NICOSIA – In a significant move for the nation's workforce, the Cypriot government has confirmed an increase in the national minimum wage to €1,125. The announcement came during the formal handover between outgoing Labour Minister Yiannis Panayiotou and his successor, Marinos Moushiouttas, this past Monday. This adjustment, rooted in a pre-established economic formula, marks the latest step in a policy designed to elevate baseline earnings in line with the country's evolving wage landscape.
The incoming minister, assuming his role, immediately underscored the importance of this metric, listing a future review of the minimum wage among his key priorities. His agenda, presented during the transition, also encompasses comprehensive pension reform, fortifying the social insurance system, enhancing public service efficiency, and a renewed crackdown on undeclared labour. This signals a commitment to both continuity and proactive development within the nation's social policy framework.
This latest increment follows a previous rise from €940 to €1,000, illustrating a consistent upward trajectory. The mechanism driving these changes is a government-mandated policy that pegs the minimum wage to 58.5% of the national median wage. Minister Panayiotou, who served from March 2023 until December 2025, provided context for the progression, noting that the median wage stood at approximately €1,500 when he commenced his tenure and is forecast to reach €2,000 by 2025. The newly announced figure of €1,125 is derived from a calculation incorporating the 2024 median wage combined with the annual cost-of-living allowance (CoLA).
"The increase is linked to the 2024 median wage and the cost-of-living allowance (CoLA), which together will bring the minimum wage close to €1,125," Panayiotou stated during the proceedings. This formulaic approach aims to depoliticise the process, ensuring that minimum wage adjustments are systematically tied to broader economic indicators rather than short-term political considerations.
The direct impact will be felt by thousands of employees across Cyprus, who will see their monthly earnings rise by €125. Beyond the immediate financial benefit for low-income workers, the policy is fundamentally aimed at improving living standards and reducing wage inequality. Furthermore, in a related development aimed at a specific sector, a substantial 10.66% wage increase has been separately implemented for 19 distinct occupations within the hospitality industry, addressing pressures in a key economic sector.
Looking ahead, Minister Moushiouttas's declared focus suggests the government views the minimum wage not as a static achievement but as a dynamic element of economic policy. His pledge to review the wage floor indicates an ongoing assessment to ensure it remains effective amidst inflationary pressures and economic growth. The minister also emphasised a collaborative approach, affirming the government's intention to maintain tripartite dialogue with employer organisations and trade unions.
This wage revision occurs against a backdrop of broader ambitions to reshape Cyprus's social welfare architecture. By intertwining minimum wage policy with larger goals such as pension reform and combating undeclared work, the government appears to be pursuing a holistic strategy for labour market regulation and social justice. The coming months will reveal how these interconnected priorities are balanced and implemented under the new ministerial leadership.