Public sector salaries to increase by 1.5%, costing €52.7 million

A proposed 1.5% pay raise for public sector employees in Cyprus will cost the state about €52.7 million over the next two years. This increase is set to start on October 1, 2024.

The raise will affect a wide range of workers, including civil servants, teachers, police, and judges. It will also apply to leaders of key government commissions. However, self-employed workers who contract with the government won’t receive this pay hike.

The cost to the state budget will break down as follows: approximately €9.1 million for the last quarter of 2024 and about €30.9 million for the whole of 2025. Additionally, local authorities and other public bodies will face costs of around €2.9 million in 2024 and €9.8 million in 2025.

The proposal was agreed upon in July 2024 after discussions between the Finance Minister and trade unions. It has since been approved by the Council of Ministers and is now awaiting final approval from the House of Representatives.

This pay raise is part of ongoing efforts to support public workers, especially in light of rising living expenses. However, the significant cost will require careful management of the state budget.

[With info from CNA]