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The cost of employing workers in Cyprus rose 4.1% in the second quarter of 2025 compared with the same period last year, according to preliminary data released Monday by the Statistical Service of Cyprus.
The increase reflects higher wages and salaries, which grew 4.2% per hour, as well as a rise in non-wage costs, such as social security contributions and other employment-related expenses, which climbed 4.1%.
Even compared with the first quarter of 2025, adjusted for seasonal patterns, labor costs edged up 1%, with both pay and additional employment expenses contributing equally to the quarterly rise.
The total hourly labor cost index, which tracks the average cost of labor over time and uses 2020 as a baseline of 100, reached 118.73 without seasonal adjustments and 125.06 after adjustments. A year earlier, the same figures stood at 114.01 and 119.95, respectively.
Economists say such increases can signal rising business expenses, which may eventually affect prices for consumers, but they also reflect stronger compensation for workers.
