President of Cyprus: wage and pension growth a priority on Labor Day

The President of Cyprus addressed citizens in a written message on the occasion of May 1st, emphasizing the significance of the holiday as a symbol of the workers' struggle for decent working conditions, safety, and social justice.

In his message, the head of state noted that economic development must bring real benefits to all citizens, ensuring stability, prospects, and an improved quality of life. According to him, the government is achieving this goal within the framework of social liberalism policy.

Among the key measures, he highlighted the increase in the minimum wage from 940 euros in 2023 to 1088 euros in 2026, representing a 13.6% growth. A tax reform was also carried out, through which approximately 200,000 workers received an increase in disposable income. Specifically, the tax-free threshold was raised from 19,500 to 22,000 euros.

The President also emphasized the restoration of the wage indexation mechanism: initially, payments increased to 66.7%, and from November 2025, a phased return to full 100% indexation over a year and a half began.

Special attention was paid to pension policy. During the 2023–2025 period, basic and minimum pensions increased by approximately 10%. The authorities also continue work on pension system reform aimed at increasing its sustainability and fairness, especially for low-income citizens.

According to the president, positive dynamics are also observed in wage growth: in 2024, the average salary increased by 5%, and in 2025 by 4.6%.

The head of state added that within the framework of the Cyprus Presidency of the Council of the EU, it was possible to advance important agreements in the social sphere after a long period of stagnation.

Concluding the address, the president stressed that supporting workers and strengthening social policy remain key government priorities.