According to a new report by the Statistical Service of Cyprus (Cystat), the average monthly income of employees in the country in 2025 increased to €2,605. However, the median salary was significantly lower at €1,968, clearly demonstrating inequality in income distribution. The difference between the mean and the median is important: the average can be heavily distorted by the high salaries of a small group of people, while the median reflects the real income of a typical worker.
In the fourth quarter of 2025, the average gross monthly salary reached €2,932, which is 4.4% higher compared to the same period in 2024, when it stood at €2,810. Taking seasonal adjustments into account, incomes increased by 1.1% compared to the third quarter of 2025.
Pay gap between men and women
The average earnings of men in Cyprus amounted to €3,102, while women earned €2,718 on average. Compared to the fourth quarter of 2024, men’s incomes grew by 4.2%, and women’s by 4.5%. The faster growth in women’s wages is partly linked to efforts to reduce the gender pay gap, as women traditionally started from a lower base. This trend reflects gradual convergence rather than an immediate achievement of parity. Over the full year 2025, average incomes increased by 4.9% following a 5.1% rise in 2024.
Cypriots and foreigners: who earns more
The report also revealed clear patterns in income distribution among different population groups. Among Cypriot citizens, the largest share — 42.8% — falls into the €1,500 to €2,999 category. At the same time, 47.7% of foreign workers are concentrated in the lowest income group — below €1,500. Interestingly, foreigners are also more frequently represented in the highest income category above €6,000: 7.8% of non-Cypriots compared to 5.2% among local employees. Cypriot citizens, on the contrary, demonstrate a more balanced distribution across middle and higher income levels.
Gender differences in income
Among women, 38.8% fall into the lowest income category, while 40.5% of men are concentrated in the €1,500 to €2,999 range. This confirms that women not only earn less on average, but are also more likely to be in the low-income group.
It is important to note that all the figures include base salaries, cost-of-living allowances, overtime pay, contributions to holiday funds, and bonuses, including irregular payments such as 13th and 14th salaries.
Why the median salary matters more than the average
The report by the Statistical Service emphasizes that average salary figures can mask real inequality. The median salary of €1,968 provides a more accurate picture of the typical income level of workers in Cyprus than the average of €2,605. This is particularly important for assessing living standards and shaping social policy.
It is also worth noting that the euro has been the official currency of Cyprus since 2008, and all calculations are carried out in this currency. In 2026, the Cypriot economy continues to show steady labor market growth; however, issues of income inequality between local and foreign workers remain unresolved, requiring further attention from regulators and employers.