Cyprus ranks 12th among the 22 European Union countries with a national minimum wage.
According to a recent Eurostat report, the minimum monthly wage on the island was one thousand euros before tax at the beginning of 2025.
This is almost double that of Bulgaria (the lowest in the EU at €551), but about a third lower than Luxembourg (top of the table with a minimum of €2,638).
According to the agency, 22 of the 27 EU countries now have a national minimum wage. The exceptions are Denmark, Italy, Austria, Finland and Sweden - in these countries minimum wages are regulated in a different way, mostly through collective agreements or market mechanisms.
If we take a closer look:
- Less than 1 000 euro per month is paid in Bulgaria (551 euro), Hungary (707 euro), Latvia (740 euro), Romania (814 euro), Slovakia (816 euro), the Czech Republic (826 euro), Estonia (886 euro), Malta (961 euro), Greece (968 euro) and Croatia (970 euro).
- Between 1 000 and 1 500 euro are earned in Cyprus (1 000 euro), Portugal (1 015 euro), Lithuania (1 038 euro), Poland (1 091 euro), Slovenia (1 278 euro), Spain (1 381 euro).
- More than 1 500 euro is paid to residents of France (1 802 euro), Belgium (2 070 euro), Germany (2 161 euro), the Netherlands (2 193 euro), Ireland (2 282 euro) and Luxembourg (2 638 euro).
The difference between the highest and lowest minimum wage is impressive - 4.8 times.
However, Eurostat points out that such differences are somewhat reduced if we take into account the price level and the cost of living in the different countries. Adjustment for purchasing power (PPP) allows a more objective comparison of real incomes. After this adjustment, the difference between minimum wages in the EU falls to 2.3 times - from 878 PPP in Estonia to 1 992 PPP in Germany. This means that in countries with lower prices, the minimum income can provide more goods and services than in countries with a high cost of living.
Interestingly, in 2022, three EU countries - France, Portugal and Slovenia - had minimum wages at 66% of the average, the highest in the Union. At the same time, in countries such as Estonia, Latvia, Malta and Belgium, the minimum wage was less than half the average wage.
The implication for Cyprus is that although it is formally in the middle of the ranking, its real attractiveness for low-paid workers may be higher due to its moderate prices, especially compared to Western European countries. Nevertheless, in the context of inflationary pressures and rising costs of living, the issue of indexation of the minimum wage remains relevant and requires further attention from the government.
Experts emphasise that the minimum wage is not only an economic but also a social instrument that has a direct impact on living standards, consumption and social stability. Therefore, its adequacy is key to sustainable development.