One of the most pressing issues facing Cypriot society today is the plight of low-income workers.
According to recent statistics, approximately 60% of people employed in Cyprus earn less than €1,500 per month before taxes.
The average income often cited by officials does not reflect the daily reality of most citizens. This is because the figures are inflated by the high salaries of a small group of international corporate employees and top managers. Labor Minister Yiannis Panayiotou recently presented Eurostat data with enthusiasm, showing that the average salary had risen 13% over two years, reaching nearly €2,500, and that the median salary had increased 11.5%, reaching nearly €1,900. He also noted that the number of workers with incomes below €1,000 decreased by 30%.
However, behind these "successes" lies a different picture. The Eurostat data is based on samples from the official statistical service but does not reflect the situation of most workers. According to wage distribution, approximately 265,000 workers—almost 60% of the entire working population—earn less than €1,500 per month. Around 10,000 people earn €500 or less, about 20,000 earn between €500 and €750, and over 100,000 earn between €750 and €1,250.
The average salary in Cyprus is distorted by a small number of highly paid specialists. Employees of international IT companies, as well as top managers in the financial and legal sectors, often earn between €5,000 and €10,000 per month, and sometimes up to €15,000. These incomes significantly inflate the average, which does not reflect the situation of most workers.
The Minister of Labor ignored the issue of the minimum wage in his statements. However, when asked by a journalist about the minimum wage, Panayiotou was candid.
"The minimum wage is not average or even good; it's the worst possible wage in the country," the minister said.
According to purchasing power parity data, Cyprus ranks 15th in the EU. This does not take into account countries such as Denmark, Austria, or Sweden, where the minimum wage is not officially set because income levels are significantly higher. In Cyprus, wage growth has not been accompanied by an equally rapid decline in the cost of living. In fact, prices for basic necessities and housing rents continue to rise while the real incomes of most households remain the same. This issue is particularly acute in sectors such as construction, where there is a critical shortage of labor. Romanian workers, who previously made up a significant part of the industry, are returning en masse to their homeland, where working conditions and pay are now more attractive.
Analysts and business representatives acknowledge that the upcoming tax reform will not bring tangible changes for most citizens. Those earning less than €1,500 simply won't benefit from the proposed tax breaks, while middle- and high-income earners will be the main beneficiaries of the reform.
The Minister of Labor has stated that a review of the minimum wage is planned for January 2026 and that dialogue with social partners will continue until then. Discussions on the cost-of-living allowance are ongoing as well, and a final decision depends on reaching a consensus among employers, trade unions, and the government.
Currently, most workers in Cyprus live in conditions where official reports and real purchasing power are diverging. If the reforms are truly intended to improve citizens' lives, the focus should not only be on the figures in the reports but also on people's everyday needs — the 60% who currently remain on the sidelines of "economic growth."