The government of Cyprus has officially increased the national minimum wage. It is now €1,125 each month. This announcement happened at a special event. The old Labour Minister, Yiannis Panayiotou, gave the job to the new minister, Marinos Moushiouttas. This change is part of a plan. The plan connects the minimum wage to the country's average pay.
The new minister said this change is very important. He also mentioned other goals. These include changing pensions, making social insurance better, and stopping illegal work. This shows the government wants to improve its social plans.
This is the second time the minimum wage has gone up recently. Before, it was €940 and then €1,000. The changes happen automatically. They use a government rule. This rule sets the minimum wage at 58.5% of the average wage. Half of workers earn more than this amount. Half earn less. Minister Panayiotou said the average wage was about €1,500 when he started in 2023. It is expected to be €2,000 by 2025. The new €1,125 amount comes from a calculation. It uses the 2024 average wage and a yearly cost-of-living increase.
"The increase is linked to the 2024 average wage and the cost-of-living allowance," said Panayiotou. This method helps keep decisions based on real economic facts. It tries to avoid short-term political choices.
Many workers in Cyprus will get more money. They will receive €125 more each month. The plan wants to help people live better. It also wants to reduce differences in pay. In another decision, jobs in hotels and restaurants will get a big pay rise. A 10.66% increase is approved for 19 specific jobs.
Minister Moushiouttas plans to look at the minimum wage again. This shows it is an important part of the economy. He will work with employers and workers' groups. This wage change is part of larger plans. These plans include pension changes and fighting illegal work.