New agreement for minimum wage set

The minister of labour is on Wednesday expected to issue a decree revising the amount of the national minimum wage, following months of debate with trade unions and employers’ organisations.

As of January 1 of this year, the current statutory minimum wage in Cyprus is €940 per month. Trade unions have been pressing for an increase.

Reports said a hike was a foregone conclusion – what remained unclear was the extent of the increase.

Despite initially opposing any increase, employers later proposed €970. Unions want the minimum wage to go up to €1,020.

At the cabinet meeting on Wednesday, Labour Minister Yiannis Panayiotou will submit the findings of an advisory committee. The findings, though assisting the minister in formulating his recommendation on the matter, are not binding.

The cabinet is expected as a formality to approve the minister’s recommendation, after which he will issue the relevant decree revising the minimum wage.

Employers were against an increase, arguing it would raise operating costs for businesses.

Trade unions on the other hand said inflation is eating away at the current minimum wage, which is why it needs to be raised. They also cited data showing that during 2023 the rate of employment went up, as did productivity.

The minimum wage decree does not cover domestic workers, people working in agriculture and livestock, persons employed in the shipping industry, and hotel workers who are covered by a different decree.