Recent data from the Statistical Service show that wages in Cyprus increased by around 5% in 2025. However, economists agree that these increases are not being felt by the majority of workers, who continue to struggle under the weight of the rising cost of living.
Speaking to Politis, economists stress that the key issue is not nominal wage growth but purchasing power. Tasos Iasemidis said that although wages are rising, they are not keeping pace with the cost of basic needs such as rent, loan repayments and inflation. “For many workers, even an average salary is no longer sufficient for a decent standard of living,” he said, adding that the gap between reported average wages and real disposable income is widening.
Housing and basic bills drive pressure
Michalis Florentiades pointed out that housing costs and utility bills are among the main sources of strain on households. While average gross monthly earnings appear relatively high at around €2,600, he said this figure is skewed by a small number of very high earners. “Around 50% of employees earn less than €2,000 per month, which is far more representative of reality,” he noted.
Florentiades added that despite economic growth in recent years, Cyprus lacks sufficient dynamism, investment and innovation to generate enough high‑quality, well‑paid jobs, particularly for young graduates, whom the country struggles to retain.
Real income lagging behind prices
Economist Marios Soupaslis underlined that wage figures must be assessed alongside real household spending. In 2025, average gross monthly earnings stood at €2,605, but the median wage was €1,968. At the same time, average annual household consumption expenditure reached €43,263 in 2023, or about €3,605 per month, marking an increase of nearly 39% compared with 2015/2016.
He said that spending on housing, electricity, water, fuel, food and transport now absorbs more than half of household budgets, while cumulative inflation from 2022 to 2025 is estimated at around 15.8%, with price increases remaining embedded.
Soupaslis also highlighted social repercussions, noting that in 2024 about 17% of the population was at risk of poverty or social exclusion. “The question is not whether wages have risen, but whether they are sufficient for today’s prices,” he said.
A structural problem
Stelios Platis described the issue as a structural one, arguing that post‑2013 growth has not translated into security for wage earners. “People do not live on macroeconomic indicators – they live on rent, electricity bills, fuel, food and childcare costs,” he said.
Platis argued that Cyprus’ economic model has become overly reliant on real estate and large‑scale developments, turning housing into an investment asset rather than a social right. “Labour and productivity have been left behind,” he said, adding that women, younger workers and low‑paid employees face the greatest pressure.
What can be done
Economists agree that relief requires a two‑pronged approach. Iasemidis stressed the need for meaningful wage increases at the lower and middle income levels, alongside stronger social and housing policies.
Soupaslis said targeted tax relief, support for low‑income households and a robust housing strategy must be combined with efforts to raise productivity through investment in skills, technology and public‑sector reform.
“Economic growth only matters if it improves everyday life,” he said, stressing that better wages must be supported by a more efficient, fair and productive economy.
The figures
According to preliminary Statistical Service data, average gross monthly earnings rose to €2,605 in 2025 from €2,483 in 2024, an increase of 4.9%. Median gross monthly earnings stood at €1,968.
