More than one in three employees in Cyprus, 188,697 people, earn less than €1,500 a month, according to figures cited by the Pancyprian Federation of Labour (PEO). The union says rising prices, higher housing costs and low wages are weighing on the finances of a large share of workers.
Assessment of the latest collective agreements
In an announcement after Monday’s enlarged session of its General Council, PEO presented its assessment of the collective agreements that expired in late 2025 and early 2026, CNA reports. It also set out its demands for the next period.
According to the union:
- 174 collective agreements were renewed
- they cover 104,183 employees
- increases in wages and other benefits averaged over 3%, on top of the cost-of-living allowance (COLA)
PEO describes the results as positive and in line with the policy it had set.
Improvements in working and social rights
The union says the renewals also brought improvements in working and social rights. In agreements that provided for a working week of more than 38 hours, steps were taken towards reducing working hours.
Employer and employee contributions to provident funds were also improved, as was financial compensation for parental and paternity leave. Pension reform was also discussed at the session.
Priorities for the 2027 agreements
For agreements due for renewal in 2027, PEO’s priorities are substantial increases in basic wages, with an emphasis on low-paid workers, and higher minimum starting salaries.
Among other demands, the union is calling for:
- universal application of the 38-hour week without loss of pay
- stronger and wider coverage by provident and welfare funds
- better social and family rights
- full financial compensation for maternity, paternity, parental and carer’s leave
- full implementation of collective agreements, effective action against violations and stronger trade union organisation
Sectoral agreements and third-country workers
PEO is also seeking the expansion and legal establishment of sectoral collective agreements, with binding application of agreed terms and minimum wages.
It is calling for a review of the strategy on employing third-country nationals, so that work permits are linked to the application of collective agreements and to effective inspections. It also wants COLA protected and extended.
Measures on the cost of living
The union’s wider demands include measures against rising prices, such as:
- a permanent VAT reduction on electricity
- abolition of double taxation on fuel
- substantial increases in social benefits and the Guaranteed Minimum Income
It is also seeking emergency support, based on socio-economic criteria, for pensioners, vulnerable households and low-paid workers to cover heating costs. It is also calling for taxation of large fortunes and windfall profits.
Housing and healthcare
PEO is calling for a comprehensive housing policy, the development of social and affordable housing, and a rent subsidy scheme based on socio-economic criteria.
It is also asking for the General Healthcare System (GHS) and public hospitals to be strengthened, with better quality of and access to health services.
Minimum wage
On the minimum wage, PEO is asking the government to deliver immediately on its commitment to an hourly rate.
Talks on setting the new minimum wage are expected to begin in 2027. That year the union will seek a substantial increase, so that the wage reflects the higher cost of living and is not a “poverty wage”.
Call for government action
PEO is asking the government for specific policy decisions and institutional measures to support workers and social protection. According to the union, economic growth must translate into better wages, decent working conditions and a real improvement in workers’ lives, not only into higher profits.
Source: CNA
