Cyprus Ministry of Labour proposes new settlement scheme for social insurance debts

The Cyprus Ministry of Labour, headed by Marinos Mousioutas, is preparing a third scheme for the settlement of overdue social insurance contributions, which currently total approximately €210 million. The proposal aims to assist employers and self-employed individuals burdened by debt who face potential legal action. Unlike previous versions launched during the 2013 financial crisis and the COVID-19 pandemic, the new plan may reduce the maximum number of installments from 54 to 48. While one source indicates that interest and penalty waivers might be more limited due to the current economic climate, another suggests lump-sum settlements could still offer exemptions from additional charges. The scheme requires an amending bill to be passed by Parliament before its dissolution in April for the upcoming elections. Once approved, the Labour Minister will issue a notification in the Official Gazette to invite applications from eligible debtors. Successful applicants with pending criminal prosecutions for unpaid contributions may have their proceedings suspended by the Attorney General after formal notification. The plan targets liabilities accumulated before a specific date to be defined by the minister.