The Cyprus government will launch a social dialogue for the implementation of the national minimum wage when full employment is reached, namely when unemployment is around 5%.
The decision was solidified through agreement among the Council of Ministers on Wednesday, as announced by deputy government spokesman Panayiotis Sentonas.
The spokesman said the Labour Ministry has already completed all relevant studies on the matter, including ways of introducing a national minimum wage and on the potential effects its introduction will have on the labour market, social policy and other aspects of the local economy. Studies also looked into potential evaluation mechanisms for the regular adjustment of the minimum wage.
Sentonas said that prior to the coronavirus pandemic, unemployment in the Republic stood at 6%, very near full employment conditions, but today the figure has risen to 8%, mainly due to the severe blow suffered by the tourism sector.