The Government is raising the national minimum wage. Monthly full-time earnings will go up from €1,000 to €1,088 after six months of continuous work. The Minister of Labor, Marinos Moussouttas, announced this on Tuesday after a Cabinet meeting.
This change is part of the updated Minimum Wage Order of 2025. It comes after a thorough look at economic and social data. Also, the minimum wage for workers who haven’t completed six months will increase from €900 to €979.
Mr. Moussouttas said setting the minimum wage is about finding a balance. It protects workers while keeping businesses sustainable and competitive. He noted that factors like inflation for 2024–2025, growth in the Cypriot economy, and a drop in unemployment were considered.
The Minister believes this wage increase will help about 50,000 low-wage workers buy more without causing inflation or hurting jobs, especially in small and medium-sized businesses. He added that the new minimum wage includes an Automatic Cost-of-Living Adjustment of around 2%.
When asked about how this decision was made, he explained that there were consultations within a Technical Committee. This group includes representatives from employers, unions, and the Ministry of Labor. After looking at all economic indicators, the Government decided on amounts of €1,088 and €979.
The new rule will take effect when the relevant decree is published before January 1, 2026, and will last until the end of 2027. Lastly, the Minister said talks on setting an hourly minimum wage and other labor market reforms will start soon, focusing on social dialogue.
