THE HRDA OPENS THE DOOR TO THE SELF-EMPLOYED

THE HRDA OPENS THE DOOR TO THE SELF-EMPLOYED - Filenews 28/4


A new era in training from 6 April 2026 - Dr Konstantinos N. Fellas, Chairman of the Board of Directors of the HRDA


A historic change in the field of vocational training is being implemented from 6 April 2026, as the Human Resource Development Authority of Cyprus (HRDA) includes the self-employed in all its Plans for the first time.

For the first time, the self-employed acquire the opportunity to participate in the HRDA's Plans with a grant, just like the employees. This is an important development that opens up new prospects for thousands of professionals throughout Cyprus. This decision reverses a long-standing backlog of the training system and offers equal access to a large, hitherto excluded, working population.

A gap that closed after years

The non-participation of the self-employed in the sphere of activity of the HRDA had been recognized as one of the weaknesses of the system. Thousands of professionals did not have access to subsidized training, despite the fact that they are a key part and living cell of the Cypriot economy.

With the adoption of the Human Resources Development (Amendment) Law of 2026 and the approval of the Human Resources Development Authority (Fee Payable by Employers and Self-Employed) Regulations of 2026, this gap is closing once and for all. For the first time, the self-employed are fully integrated into the support system of the HRDA. The application is mandatory and universal. The participation fee is set at 0.5% of the insurable earnings, an amount corresponding to that paid by employers for their employees. The collection will be done by the Social Insurance Services, with the payment of social security contributions.

31,000 new beneficiaries, the professions that dominate

The number of beneficiaries reaches 31,000 self-employed, according to 2024 data. The largest professional categories include:

Shopkeepers (6,979 people)
Accountants, economists, lawyers and other freelancers (3,452 people)
Doctors, pharmacists and other healthcare professionals (2,929 people)
Craftsmen (2,709 people)
Builders and related professions (2,389 people).

The annual fee they will pay ranges from €50 to €160, depending on the professional category, with a total annual contribution to the Human Resource Development Fund, based on their contributions to the YKA in 2024, estimated at €2.3 million.

How the self-employed will be integrated

The process is simple and is done through the Mercury electronic portal. Each interested party must be registered in the register of the HRDA as a natural person, if he is not already registered
to acquire, through the Hermes system, the role of "Self-employed".

The way applications are submitted to the Hermes system depends on whether the person employs staff or not. In case the self-employed person is also an employer, he/she submits the applications for approval of training programs or participation in training programs with the role of "Employer", while the self-employed person who is not an employer submits the applications with the role "Self-employed".

Which programs do they gain access to?

With this change, the self-employed gain access to all HRDA Plans, including:Single Business Training Programs in Cyprus
Single Business Training Programs in Cyprus (State Aid)
Single Business Programs Abroad
Multi-Business Programs – Common
Multi-Business Programs – Vital.

The subsidies that the self-employed can receive are the same as the subsidies for employees and are particularly important:up to €20/hour for most plans
up to €100/hour in Vital Programs
up to €8,400 for training abroad, covering tuition, travel, accommodation and staff costs.

What change means for Cyprus

The inclusion of the self-employed is not just an administrative enlargement, it is a profound reform with a positive social and economic impact.

The self-employed are a key pillar of the Cypriot economy. Their access to subsidised training is expected to:

-improve competitiveness of small businesses
-encourages the acquisition of new knowledge and the adoption of new skills
-enhance the quality of services in critical sectors
-increase overall participation in lifelong learning programmes.

The HRDA makes it clear that its goal is equal access to knowledge and development for all businesses and professionals who contribute to the country's economic progress, in a way that has not been possible until now.

Conditions, obligations and what the interested party needs to know

In order to take advantage of the new possibility in practice, the self-employed will need to be consistent with the obligations arising from the new framework.

The central point is the payment of the 0.5% fee on insurable earnings, which will be collected by the Social Insurance Services along with the rest of the contributions. The payment of the fee acts as a "ticket" to participate in the subsidized training system: it strengthens the Human Resources Development Fund and, at the same time, secures access to projects that until now were considered a privilege of employees.

In practice, the most useful remarks for a self-employed person before starting are the following:

-Confirm that he/she is registered in the register of the HRDA and that his/her details (VAT number/identity card, contact details) are up to date.
-Ensure that they have activated the correct role in the Hermes portal ("Self-employed" and/or "Employer", depending on each case).
-To submit applications for participation in training programs in a timely manner, before the start of the training.
-To check the specific criteria of each Plan.

Examples: how a grant translates into a real benefit

For many self-employed, the grant is not just "a discount" on the cost of education, but an opportunity to invest in skills that they would hardly finance on their own. An accountant, for example, can join a program on digital accounting tools or new tax/compliance requirements, upgrading their services and saving time through automation. Accordingly, a craftsman can be trained in new installation techniques or safety standards, reducing errors, improving quality and increasing customer trust.

Of particular interest are also the "Vital" programs, where the maximum amount of subsidy per hour is many times higher. In industries with a shortage of skilled human resources, such actions can act as an accelerator to meet market needs. At the same time, the possibility of subsidizing training abroad, covering tuition fees and expenses, can support self-employed workers who want to bring state-of-the-art know-how to Cyprus, especially in areas such as health, information technologies, green transition and modern construction techniques.

Challenges and Next Steps

As with any major reform, success will be judged on its implementation. Informing the beneficiaries, familiarizing themselves with the electronic procedures and providing the right guidance in filling out applications will determine how quickly the 31,000 self-employed will move from theory to practice. At the same time, the expected increase in demand may enhance competition between training providers and lead to a greater variety of subjects, better quality and more targeted and effective trainings.

At a time when the labour market is constantly changing and small businesses are being called upon to modernize, access to subsidized training can act as a tool for survival and productive growth. With the inclusion of the self-employed, the HRDA substantially expands the circle of lifelong learning in Cyprus and turns a chronic inequality into an opportunity: to upgrade skills, enhance productivity and equip the economy with a more resilient human resource.

FORBES CYPRUS