The government of Cyprus is preparing to raise the national minimum wage significantly. Officials have promised that the increase will be a meaningful one, based on the country's economic growth, and not just a small change. At the same time, the government has approved a special one-time Christmas Bonus for 2025, which will help tens of thousands of low-income families. These decisions come as the government tries to help people with the high cost of living, while also dealing with ongoing discussions with trade unions.
Labour Minister Yiannis Panayiotou said that discussions about changing the minimum wage law are almost finished, and an official announcement will come soon. He stressed that the government wants the raise to make a real difference for workers. "The rise in Cyprus’s minimum wage will not be 'symbolic'," he stated. "It will reflect the economy’s positive growth and address real needs." This change follows a recent agreement to bring back the Cost-of-Living Allowance (CoLA), which automatically adjusts wages based on inflation. This ends a long period of worry for employees about their pay.
In a separate support measure, the government has created a special bonus payment for December 2025. Christos Diomidous, a Benefits Management Service Officer, explained that rising living costs led to this decision. "We know that needs are increasing," he said, "and that is why we are changing the laws and increasing benefits." The bonus, which will cost over seventeen million euros, will go to about 65,000 families. These families already receive state support, such as the Minimum Guaranteed Income.
However, not everyone is satisfied with the government's actions. The trade union PEO has criticized the government's overall labour policies. The union's General Secretary, Sotiroulla Charalambous, argues that the government is weakening collective bargaining agreements. The union also believes that bigger political problems, like the Turkish occupation in northern Cyprus, are preventing better economic conditions for workers. This shows that tensions between the government and unions continue, even when they agree on specific points.
The new minimum wage and the 2025 bonus are two parts of a strategy to help families with low or no income. Experts think these steps might reduce some social pressure caused by high prices. However, the government admits that more difficult changes are coming, especially to the pension system. How well these current measures work, and how people react to them, will affect the government's ability to make future reforms.