Replacement of Low Productivity Employment Positions

A Scheme that aims at empowering enterprises to replace low value added employment positions with higher value added ones as published for the first time in May 2009 by the Cyprus Productivity Centre (CPC).

The Scheme, which is co-funded by the European Social Fund, is a government programme that requires enterprises to submit proposals to improve their own productivity. The concept of the scheme was based on research performed by the CPC on internal and external factors that drive productivity improvement as well as the impact of education and training. It calls for the enterprise to formulate a plan based on: its own strengths and weaknesses, the market it is active in, and a host of other business issues, in order to improve its productivity through the replacement of low value added employment positions with higher added value ones. The maximum level of sponsorship per application for the elaboration and implementation of the business plan are eighty thousand euros (€ 80,000). The intensity and the maximum level of sponsorship per type of eligible expenditure are shown in table below:

Eligible expenditure Intensity sponsorship (sponsorship as a percentage of eligible expenditure)% Maximum amount of Euro sponsorship
Processing and Preparation of a business plan (cost of advisors and/or personnel costs) 75% 15.000
Implementation of the business plan 70.000  
Consultancy Services 75% 20.000
Personnel costs 50% 40.000
Training 75% 10.000
Purchase of Software 75% 30.000

Eligible costs:

The eligible costs which will be subsidized by the scheme relate wholly and exclusively to the expenses incurred for the preparation and implementation of the business plan, in the following categories.

1. Cost of consultants for the processing and preparation of the business plan

2. Cost of consultants and/ or employees for the implementation of the business plan

3. Training of staff for the implementation of the business plan

4. Cost of purchase of new software for the implementation of the business plan (i.e. ERP system, performance management system etc)

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