The Cyprus Finance Ministry has unveiled a major overhaul of the travel allowance framework for civil servants, effective from May 1, 2026. This update introduces new spending caps on overnight and daytime subsistence costs for public sector employees. The adjustment, detailed in a policy circular from the public administration and personnel department, revises longstanding guidelines that had been in place since February 2024.

The changes include the introduction of two salary-based allowance tiers and specific exceptions for higher spending under certain conditions, such as official duties related to Cyprus' Presidency of the Council of the European Union in 2026. These modifications aim to streamline public sector travel expenses while ensuring fiscal prudence and alignment with organizational responsibilities.