Salaries of Public Sector Employees in Cyprus to Increase by 1.25% in January

In January, base salaries for public sector employees in the Republic of Cyprus will increase by 1.25%. This rise is tied to adjustments for the cost of living. The Ministry of Finance has provided details on how this increase will be calculated.

According to the Ministry, the average consumer price index (excluding excise duties) in 2024 is 113.46 points, up from 111.38 points in 2023, reflecting a 1.87% increase.

The Cost of Living Allowance (CoLA) is determined as 66.7% of the change in the consumer price index. By multiplying the 1.87% increase by 66.7%, the result is 1.25%.

CoLA is applied provided that GDP growth was recorded in the second and third quarters of the previous year.

• "Considering that real economic growth, adjusted for seasonal fluctuations, was 3.5% in the second quarter and 3.8% in the third quarter of 2024, and also taking into account the increase in the base CoLA index in 2024 compared to 2023, the 1.25% adjustment is included," the ministry explained.

It’s also worth noting that, according to the Ministry of Labor, in 2022, only 30% of private sector workers received payments under the CoLA program.