Cyprus will raise the minimum wage once again: the new threshold is around €1125

Labour Minister Yiannis Panayiotou announced that during the upcoming review, the minimum wage in Cyprus will increase to approximately €1125. The new minimum wage has been calculated based on 2024 data — taking into account the median salary and the cost-of-living index. The government maintains its principle: the minimum wage must amount to 58.5% of the median salary. Previously, the minimum wage was already raised — from €940 to €1000.

Panayiotou noted that when he took office, the median salary was around €1500, and now, according to estimates, it is moving toward €2000. This allows the lower wage threshold to be revised. As an example of positive developments, he cited tourism: in this sector, wages have risen by more than 10% in recent years — specifically by 10.66% across 19 professional categories.

The responsibilities of the Minister of Labour are now being transferred to Marinos Moushiouttas. His priorities include updating the pension system, revising the mechanism for determining the minimum wage, strengthening the social insurance fund, combating undeclared work, and improving the quality of public services. The new minister emphasises that cooperation between the state, employers, and trade unions is crucial.

Summing up his work, Panayiotou recalled that during his term:

• the employment rate exceeded 80%,
• overall unemployment dropped below 5%,
• youth unemployment fell from 16.1% to 13.1%,
• the average salary increased from €2202 to a projected €2560.

Processing times for social insurance applications were also reduced, procedures for foreign workers were accelerated, and benefits for families with children were expanded — from pregnancy to childcare.