The government of Cyprus has officially raised the national minimum wage to €1,125 per month. The announcement was made during a handover ceremony between the outgoing Labour Minister, Yiannis Panayiotou, and the new minister, Marinos Moushiouttas. This increase is part of a planned policy that connects the minimum wage to the country's general wage levels.
The new minister immediately highlighted this change as very important. He also listed other key goals, including reforming pensions, improving social insurance, and fighting against illegal employment. This shows the government wants to continue developing its social policies.
This is the second recent increase, following a previous rise from €940 to €1,000. The changes are automatic, based on a government formula. This formula sets the minimum wage at 58.5% of the national median wage—the point where half of workers earn more and half earn less. Minister Panayiotou explained that when he started his term in 2023, the median wage was about €1,500. It is expected to reach €2,000 by 2025. The new €1,125 figure comes from a calculation using the 2024 median wage and an annual cost-of-living allowance.
"The increase is linked to the 2024 median wage and the cost-of-living allowance, which together will bring the minimum wage close to €1,125," Panayiotou said. This method tries to keep the decision separate from short-term politics, connecting it instead to clear economic data.
Thousands of workers in Cyprus will directly benefit, receiving €125 more each month. The policy aims to improve living standards and reduce income inequality. In a separate decision for the hospitality industry, a significant 10.66% pay rise has also been approved for 19 specific jobs.
Looking forward, Minister Moushiouttas plans to review the minimum wage again, showing it is seen as an active tool for economic policy. He promised to work with both employers and trade unions. This wage change is part of bigger plans, which include pension reform and fighting illegal work, suggesting a complete strategy for the labour market and social fairness.