Newsroom
Cyprus' House of Representatives has passed an agreement between the government and trade unions to implement a general 1.5% wage increase for public and semi-public sector employees. The decision was reached with 25 votes in favor and 17 against, following a lengthy debate that revealed deep divisions within the parliament.
The law, which will take effect on October 1, 2024, includes a 1.5% salary increase for civil servants and pensioners, with a minimum annual raise set at €331.28. The salaries of members of the Public Service Commission (EEDY) and the Educational Service Commission (EEY) will also rise accordingly.
Disy MP Harris Georgiades strongly opposed the wage hike, citing that under Disy’s governance, cuts to public salaries were gradually reversed, and allowances were reinstated. He noted that the public wage bill had increased by 35% in the last three years alone, reaching €1.1 billion, warning against what he called an “uncontrolled rise in public sector salaries.” Georgiades emphasized the need to link wage increases to productivity.
Edek leader Marinos Sizopoulos argued that parliament should not have been involved in ratifying an agreement between employer and employees, stressing the importance of boosting productivity. He reiterated his party's proposal to tie wage increases, including the Cost of Living Allowance (ATA), to productivity.
Akel MP Andreas Kafkalias supported the bill, emphasizing that it resulted from an agreement between trade unions and the government. However, he criticized the lack of provisions for staggered increases and lamented the exclusion of lower-wage workers in salary scales A1-2-5, whose upgrades remain pending.
Diko MP Chrysis Pantelides welcomed the wage increases, noting they were the first in 15 years, and clarified that they do not apply to high-ranking officials such as the President, ministers, and mayors. He also highlighted the need to align public and private sector wages by increasing private sector salaries rather than reducing public ones.
Elam MP Linos Papayiannis expressed concern over the growing divide between public and private sector employees, while the Greens' Stavros Papadouris opposed the increases, citing the country's 2013 financial collapse and warning about the rising state payroll, which has surged from €2.58 billion in 2013 to €4.2 billion today.
Despite the criticism, many lawmakers stressed the necessity of wage increases for lower-paid employees, with some calling for further efforts to expand collective agreements in the private sector.
