Cyprus has long attracted tourists, investors, and professionals seeking employment. One of the main issues for this group is the level of salaries on the island. In addition to its attractive climate and favorable tax system, Cyprus offers a clearly established minimum wage that guarantees employees a basic level of income. Since 2022, Cyprus has had a single national mechanism for regulating the minimum wage, which improved in 2023–2025. However, it does not apply to all categories of workers and is regularly reviewed.
Minimum wage
According to Cypriot law, every full-time employee is entitled to a basic salary. Starting January 1, 2024, two levels were established: employees with less than six months of continuous employment with the same employer receive at least €900 gross per month, while those with six or more months of continuous employment receive at least €1,000 gross per month.
This encourages long-term employment relationships and protects employees during their first months of work. It is important to note that this refers specifically to full-time employment, the parameters of which are determined by either collective agreements or a written agreement between the employer and employee. In other words, there is no clear indication of the length of a full working day. Currently, approximately 25,000 private sector workers and 250 public sector employees in Cyprus receive the minimum wage.
The minimum wage for hourly and part-time employees
The national decree on the minimum wage in Cyprus applies not only to employees with a fixed monthly salary but also to hourly and part-time workers. The law expressly provides that, in such cases, the amount of remuneration shall be determined proportionally.
There are three ways to calculate it, depending on which rules apply to the specific employer and industry. First, it can be based on the minimum wage set by the state, in proportion to the time worked. Second, it can be based on the standard working week for full-time employees at the employer. Third, it can be calculated based on the average working week for the industry if this is specified in legislation or collective agreements.
Retail trade is an example of this. In this sector, full-time salespeople receive the minimum wage for 38 hours of work per week (Article 11 of the Law "On the Regulation of the Activities of Stores and the Working Conditions of Employees in Trade"). If a salesperson works only 19 hours, exactly half of the standard, they are entitled to receive at least 50% of the established minimum monthly rate.
This approach ensures that, even with part-time or hourly work, employees receive fair and legal compensation in accordance with minimum standards established at the national level.
Exceptions to the general rule
Although the minimum wage applies to most professions, there are exceptions. The general rule does not apply to domestic workers, agricultural and livestock workers, or seafarers. Separate regulations apply to hotel industry employees, for whom the minimum wage is set by a special decree (No. 55/2025), which has been in force since January 2025. This decree clearly sets salaries for each category of personnel. These salaries take into account the specific nature of tourism, one of the key sectors of the Cypriot economy.
A list of professions covered by the minimum wage decree in the hotel sector is available on the ministry's website. It is important to understand that these exceptions will remain in place even with the introduction of a new national rate. For these categories, terms of payment agreed upon in collective or personal agreements will remain valid.
Contributions are calculated from the minimum wage in Cyprus
Mandatory contributions are deducted from the minimum wage in Cyprus for two funds: 8.3% to the Social Insurance Fund and 2.65% to the national health system, GESY. Additionally, employers transfer 8% to the Holiday Pay Fund. This amount is not deducted from employees' salaries, but it is considered when calculating social security contributions.
For instance, if an employee earns €1,000 after six months, the contributions will be €80 to the Holiday Pay Fund, €89.64 to the Social Insurance Fund, and €28.62 to GESY. Consequently, the employee will receive €881.74. With a minimum salary of €900 for less than six months, the contributions will be €72 to the Holiday Pay Fund, €80.68 to the Social Insurance Fund, and €25.76 to GESY. The net take-home pay would be €793.56.
How often is the minimum wage revised?
In 2023, the Cypriot authorities introduced a mechanism for regularly revising the minimum wage. It took effect in 2024 and provides for adjustments every two years. This allows wages to adjust to inflation, the rising cost of living, and changes in the labor market.
Consequently, the next review is expected in 2026. Given rising prices and pressure on the real estate market, economists predict that the minimum wage may increase to maintain the purchasing power of the population.
Additional social context
Since May 2025, criticism of social inequality has increased, particularly regarding migrant domestic workers who are excluded from minimum wage protection. According to the Council of Europe, some of these workers continue to receive only €460 per month. With deductions for food and housing, they earn as little as €1.29 per hour, despite promises of reform. This points to the need for more active enforcement of the law at the local level.
Why is this important for workers and employers?
For employees, the minimum wage guarantees basic financial protection and stable income. For employers, it provides a clear framework that helps avoid labor law violations and create transparent employment conditions.
At the same time, Cyprus remains attractive to both professionals and companies considering relocating their staff due to its relatively low taxes and flexible business conditions.
The minimum wage in Cyprus is an important element of the country's social and economic policy, not just a figure in the law. Currently, it ranges from €900 to €1,000 gross per month depending on the length of service with one employer; certain sectors, such as the hotel industry, have their own rules. Regular reviews every two years ensure income levels align with market realities and the cost of living.
Thus, Cyprus strikes a balance between protecting workers' interests and supporting employers, making it one of the most attractive places to live and work in Europe.
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