According to July 2025 Eurostat data, Cyprus ranks 15th among the 22 European Union countries with a statutory minimum wage. When converted into purchasing power standards (PPS), Cyprus's figure was 1,078, placing it in the middle category in terms of real minimum wage levels.
The EU is divided into three groups: Cyprus is in the "middle"
New statistics clearly show how EU countries are distributed in terms of minimum income levels. The "first league" includes developed northern European countries where the minimum wage exceeds 1,500 PPS after conversion. Cyprus is in the "second group," where the indicator ranges from 1,000 to 1,500 PPS. The lowest values are recorded in Eastern Europe, specifically in Bulgaria, Latvia, Slovakia, and Estonia.
Why is the PPS indicator more important than the nominal value?
The purchasing power parity (PPP) index allows for a more objective comparison of living standards in different countries. It is a conditional currency that considers local prices of goods and services, inflation, economic growth, and other factors. Thus, with the same nominal wage level, the real value can vary significantly depending on the country.
Figures that speak for themselves
For example, although the nominal minimum wage in Cyprus has remained stable at €1,000 since the beginning of 2024, its purchasing power is lower than in Poland (€1,500) and Portugal (€1,167) but higher than in Hungary, Bulgaria, and Latvia. In comparison, Luxembourg's nominal minimum wage of €2,704 provides 2,035 PPS, making it the EU leader. Even Turkey, which is not a member of the Union, has a higher figure: 1,062 PPS.
The gap remains, but is narrowing
Eurostat notes that, when comparing minimum wages in purchasing power parity (PPP) terms, the difference between the highest and lowest incomes is halved compared to nominal values. This means that residents of the poorest EU countries have slightly more purchasing power than it might appear at first glance. However, overall income levels still vary significantly and remain an important indicator of economic inequality in the European Union.