Human Resource Development Fund- Human Resource Development Authority of Cyprus (HRDA)- Single-Company Training Programmes Abroad

Industrial Training Law (1974), Human Resource
Development Law 125(1)/1999

To create the necessary prerequisites for the planned and systematic training and development of Cyprus’s human resources, at all levels and in all sectors, for meeting the economy’s needs, within the overall socio-economic policies.

The Human Resource Development Authority of Cyprus (HRDA) is a semi-governmental organisation. Its mission is to "create the conditions for the planned and systematic training and development of human resources of Cyprus, at all levels and in all sectors, for meeting the economy's needs in the context of social and economic policies". The main source of income comes from the Human Resource Development levy of 0.5% on the payroll of all employers, excluding the government. Civil servants and the self-employed are excluded from the HRDA’s sphere of competence. The HRDA is governed by a 13-person strong Board of Directors, which has a tripartite character; the Board includes 5 representatives of the government and 8 representatives of the most significant employer organisations and trade unions.

All companies/organisations that pay the levy; the levy is mandatory, so essentially, all employers but the government.

SMEs

HRDA funds IVET and CVET programmes (single and multiple-company ones) that take place in Cyprus or abroad. The Authority also funds and runs initiatives to tackle unemployment (such as funding of training of the unemployed, economically inactive women etc.). Under specific schemes, HRDA also funds placement of unemployed graduates in companies.

Levy on companies
EU funds
Other sources of funding (e.g. loans, donations, fines, grants etc.)

The companies are obliged to contribute 0,5% of their total payroll costs to the fund (the law allows to set up the rate up to 1%). The rate is the same for all contributors (all companies except government organisations and self-employed). The money is collected via the social insurance mechanism.

Each beneficiary/employer can receive a subsidy that is calculated as the lesser amount between “authorised aid” and “maximum grant”. The authorised aid is calculated = “aid intensity” (%) x total accepted eligible expenses.

For single-company training abroad, the aid intensity is 80% for all companies.
Maximum grants per trainee are calculated based on the duration of the training. For single-company training abroad these are: 2 days EUR 1 850; 2.5-3 days: EUR 2 550; 3.5-4 days: EUR 3 100; 4,5-5.0 days: EUR 3 700; 5.5-7.0 days: EUR 4 500; 7.5-10.0 days: EUR 5 450.

Following the de minimis aid Council Regulation 1407/2013, a company cannot receive more than EUR 200 000 in a three-year time horizon.

Allocation: reimbursment of the costs. Companies that meet the predetermined criteria (set in the HRDA's schemes) receive the grant.

Fees and other costs related to education and training
(such as: cost of staff in training, travel and acomondation)

Each year

Overall funds disbursed to CVET programmes (including single-company programmes):
2012: EUR 16 349 999
2013: EUR 10 173 321
2014: EUR 6 991 369

Overall funds collected:
2012: EUR 29 369 441 (EUR 26 169 814 from Human Development Fee)
2013: EUR 28 577 879 (EUR 23 668 390 from Human Development Fee)
2014: EUR 34 206 639 (EUR 22 742 463 from Human Development Fee)

Funds disbursed per size of company:

micro companies (1-9 employees)
2011: EUR 6 298 179
2012: EUR 6 660 054
2013: EUR 4 760 000

self-employed (1 person)
2011: EUR 656 957
2012: EUR 657 636
2013: EUR 560 532

small-medium companies (10-49 employees)
2011: EUR 5 712 611
2012: EUR 6 533 329
2013: EUR 4 294 605

medium companies (50-249 employees)
2011: EUR 3 908 566
2012: EUR 4 126 190
2013: EUR 2 815 433

large companies (250+ employees)
2011: EUR 3 849 061
2012: EUR 4 222 502
2013: EUR 2 854 275

Funds collected from companies:

self-employed (1 person)
2011: EUR 1 408 536
2012: EUR 1 372 084
2013: EUR 1 250 082

micro companies (1-9 employees)
2011: EUR 6 815 648
2012: EUR 6 554 656
2013: EUR 5 852 448

small-medium companies (10-49 employees)
2011: EUR 6 519 044
2012: EUR 6 262 520
2013: EUR 5 460 597

medium companies (50-249 employees)
2011: EUR 6 301 518
2012: EUR 5 947 255
2013: EUR 5 410 582

large companies (250+ employees)
2011: EUR 7 202 817
2012: EUR 6 944 048
2013: EUR 6 255 073

In 2013, in overall 180 single-company programmes 180 individual trainees (159 male and 21 female) were funded. In 2012, 671 programmes were funded by HRDA, concerning 671 participants (494 men and 177 female).

Beneficiaries of HRDA funds per size of company (beneficiaries/eligible companies):

micro-companies (1-9 employees)
2011: 2 666/70 151 (3.8%)
2012: 2 620/67 809 (3.9%)
2013: 2 090/63 086 (3.3%)

self-employed (1 person-company)
2011: 412/ 44 794 (0.9%)
2012: 411/43 424 (0.9%)
2013: 365/40 496 (0.9%)

small and medium companies (10-49 employees)
2011: 1 446/4 050 (35.7%)
2012: 1 472/3 894 (37.8%)
2013: 1 187/3 485 (34.1%)

medium companies (50-249 employees)
2011: 469/637 (73.6%)
2012: 443/596 (74.3%)
2013: 394/570 (69.1%)

Large companies (250+ employees)
2011: 92/96 (95.8%)
2012: 87/91 (95.6%)
2013: 81/86 (94.2%)

Human Resource Development Authority of Cyprus (HRDA).

http://www.hrdauth.org.cy/

Human Resource Development Authority of Cyprus (HRDA)

HRDA 2013 Annual Report

http://www.hrdauth.org.cy/el/%CE%B7-%CE%B1%CE%BD%CE%B1%CE%B4-/%CE%B5%CF…

HRDA Manual/Guide for Single-Company Training Programmes, September 2014

http://www.hrdauth.org.cy/easyconsole.cfm/page/project/p_id/181/pc_id/1…

Ministry of Labour and Social Insurance: Guide for Employers