Around 9,500 people in Cyprus benefit each year from subsidised holiday schemes operated by the Ministry of Labour and Social Insurance, although demand significantly exceeds available funding, according to ministry officials.
The programmes include subsidised holidays for low-income pensioners and, through the Central Holiday Fund, for eligible employees. The schemes cover accommodation in mountain resorts and the Pyrgos Tyllirias area and are designed both to provide affordable holidays and to support local tourism businesses in rural communities.
Pensioners scheme – First come, first served
Michalis Loizou, a Labour Ministry official, told CNA that more than 7,500 applications were submitted this year for the subsidised holiday programme for low-income pensioners.
Applications remained open for 23 days before being suspended after requests exceeded the available budget.
The programme's allocation for 2026 amounted to €1.165 million. A total of 5,400 applications were approved, corresponding to about 6,400 beneficiaries.
Loizou said applications that did not meet the income criteria were rejected, while available funding was distributed to eligible applicants on a first-come, first-served basis.
"Due to high demand, the funding was not sufficient," he said.
Asked about beneficiaries' satisfaction with the scheme, Loizou said they are "fully satisfied, as they get a break from their daily routine."
Eighteen hotels are participating in the programme this year. Beneficiaries receive a subsidy of €57.50 per person per night, including full-board accommodation, for up to three nights between June and September, excluding August.
Loizou said participating hotel operators also benefit significantly from the scheme. He noted that discussions had been held regarding higher compensation rates due to rising costs.
The subsidy increased last year from €55 to €57.50 per person per night, but because the overall budget remained unchanged, fewer beneficiaries were able to participate.
Employee holiday subsidy
Separately, Labour Ministry official Andreas Sofokleous outlined the employee holiday subsidy programme administered through the Central Holiday Fund, which is available to contributors to the fund.
The programme's 2026 budget stands at €936,000, up from €918,000 in 2025.
A total of 2,111 applications have been submitted this year, although final beneficiary figures are not yet available as the programme remains under way.
In 2025, authorities received 2,133 applications, approving 1,658. Of those approved, 532 beneficiaries did not use the scheme, resulting in 1,126 subsidised bookings covering 3,092 people.
The programme offers accommodation at 17 hotels in mountain areas and the Pyrgos Tyllirias region, locations that face long-term sustainability challenges, Sofokleous said.
According to Sofokleous, most participants report satisfaction with the accommodation and meals provided.
Under the scheme, beneficiaries receive a subsidy of €55 per person per night for up to five nights. Hotel rates are published in advance, allowing participants to cover any additional cost if they choose more expensive accommodation.
Sofokleous said the Central Holiday Fund also provides annual holiday allowances to employees whose employers make the required contributions and subsidises holiday facilities operated by trade unions.
For 2026, €859,000 has been allocated to support trade union holiday resorts.
In addition, a separate year-round holiday subsidy programme for persons with disabilities is operated by the Department for Social Inclusion of Persons with Disabilities under the Deputy Ministry of Social Welfare.
Many public- and private-sector employees also benefit from holiday facilities run by trade unions and welfare funds across Cyprus.
Source: CNA
