A circular issued by the Ministry’s Director-General, Andreas Zachariades, as part of preparations for the 2027 budget and the Medium-Term Fiscal Framework (2027–2029), sets out the expected CoLA increases for the coming period.
The increase is estimated at 0.12% for the period from 1 January 2027 to 30 June 2027, rising to 4% from 1 July 2027 to 30 June 2028. This is followed by an increase of 2.5% from 1 July 2028 to 30 June 2029 and 2% from 1 July 2029 to 30 June 2030.
It is noted that from 1 July 2026 to 30 June 2027, salaries are adjusted with the payment of 90% of the CoLA increase for 2025. From July 2027 onwards, salaries will reflect 100% of the previous year’s CoLA, with a maximum increase capped at 4%.
Salary adjustments
As regards general salary increases for the period 2027–2029, these will remain at 1.5%, while incremental rises will also be granted over the same period.
A 10% reduction in entry salary scales will continue to apply throughout 2027, 2028 and 2029. Employees placed on reduced entry scales will be entitled, upon completing two years of service, to move to the starting point of their salary scale.
