The minimum wage in Cyprus is set to increase to €1,125. This was announced by outgoing Labour Minister Ioannis Panayiotou during the official handover of power to his successor, Marinos Mousiouttas. The increase is linked to the updated calculation of the median wage for 2024 and the cost of living adjustment (CoLA), which has brought the lower income threshold closer to the new level.
It is in line with the Cypriot government's policy of linking the minimum wage to 58.5% of the median wage. Prior to this, the minimum wage increased from €940 to €1,000.
Median wage growth and changes in the economy
Panayiotou noted that the median wage at the time of his appointment was around €1,500, and it is projected to reach €2,000 by 2025. This accelerated growth in wages reflects economic recovery and increasing labour demand.
He paid particular attention to the 10.66% increase in earnings in 19 professions within the hotel and restaurant sector, which remains a key industry in the Cypriot economy thanks to tourism.
Priorities of the new Minister of Labour
Mousiouttas has outlined the areas that will determine the country's social and labour policy in the coming years. These include reform of the pension system, a possible review of the minimum wage, modernisation of the social insurance fund, reduction of bureaucracy in public services and tackling undeclared work.
The main goal is to improve the quality of life for workers and pensioners, and to strengthen the relationship of trust between the state, employers and trade unions. Mousiouttas stressed that the government's programme remains unchanged and will be implemented in the spirit of tripartite social partnership.
The results of the outgoing minister's work
Panayiotou's work as Minister of Labour from March 2023 to December 2025 brought about positive changes in the Cypriot economy. The employment rate exceeded 80%, overall unemployment fell below 5%, and youth unemployment decreased from 16.1% to 13.1%. During this period, the average salary rose from €2,202 to an estimated €2,560, which has played an important role in supporting low-income workers and strengthening the country's middle class.
The minister also highlighted improvements in processing social benefits more quickly, processing permits for foreign workers more quickly, and providing additional support for working parents, including increasing maternity, parental and childcare benefits.