Cyprus’ monthly minimum wage will increase as of January 1, 2026, following a decision by the Council of Ministers, based on updated economic and social data.
New Minimum Wage Levels
Minister of Labour and Social Insurance Marinos Moushouttas announced that the monthly minimum wage for full-time employment, after six months of continuous service, will increase from €1,000 to €1,088. The change will be implemented through an amending decree to the Minimum Wage Limit of 2025, which is expected to be published before the end of the year.
The decree also provides for an increase in the minimum wage applicable before the completion of six months of continuous employment, from €900 to €979.
Basis for the Adjustment
According to the Minister, the adjustment took into account inflation data for 2024 at 1.8% and the forecast for 2025 at 0.2%, amounting to a cumulative rate of 2%. It also considered the economy’s growth rate, projected at 3.9% for 2024 and 3.4% for 2025, as well as unemployment levels, which stood at 4.9% in 2024 and are forecast at 4.3% for 2025.
Employment and Economic Considerations
The Minister said the decree also reflects the projected moderation in economic growth in 2025, with the aim of ensuring that the adjustment does not negatively affect employment or development prospects, particularly for small and medium-sized enterprises.
Implementation Period and Coverage
The increase is expected to benefit around 50,000 workers. The new minimum wage levels will apply from January 1, 2026 until December 31, 2027.
Cost of Living Allowance
Asked whether the revised minimum wage includes the Cost of Living Allowance, Moushouttas said that, based on government calculations, COLA is included at a rate of approximately 2%.