Newsroom
Average salaries in Cyprus have risen by 13% over the past two years, reaching approximately €2,500, Minister of Labour and Social Insurance Yiannis Panayiotou announced Wednesday, citing recent Eurostat data. The median salary has also climbed nearly 11.5% to about €1,900, while the number of workers earning below €1,000 has dropped by 30%.
Panayiotou described the data as evidence of a “positive trajectory” in the labor market and a validation of the government's policies. “This reality is not artificial nor exaggerated,” he said following a Cabinet meeting, noting that salary increases have outpaced the cost of living by a factor of three.
Cyprus recorded a 4.8% rise in hourly labor costs in the first quarter of 2025, outpacing the eurozone average of 3.4% and the EU average of 4.1%. The country ranks among the top six EU member states for hourly wage increases.
The minister emphasized that wage growth should reflect the country's economic progress and benefit both employees and employers. He reiterated the government's commitment to improving wage adequacy, expanding the middle class, and protecting low-wage earners.
Asked whether the figures could hinder efforts to raise the national minimum wage, Panayiotou said the data support the government's policy direction and highlight an improving wage trend. A formal review of the minimum wage is scheduled for January 2026, with discussions to include input from trade unions and employer associations.
Panayiotou also addressed ongoing consultations regarding the Cost of Living Allowance (ATA) and noted that meetings with social partners in the hotel and construction sectors are forthcoming.
“We want this positive trend to continue and become even more tangible for citizens,” he said.
