After the financial crisis and the following economic recession, the labour market in Cyprus was severely impacted. Many businesses closed and the country suffered a dramatic increase in unemployment.

Thanks to funding from the European Social Fund, however, the country's Department of Labour has been able to increase employment by offering an incentive to businesses who recruit older people. For those employers who take on unemployed people over the age of 50 for a full-time job, the Aid Scheme covers part of the wage cost.

Under the terms of the scheme, the employer receives a grant for the first ten months of employment, which covers the person's wages. After this time, the employer is obliged to continue employing the person for a further two months without a grant.