The goal is for the positive image for the economy and our society to continue and become even more noticeable by the citizens themselves, said the Minister of Labor and Social Insurance, Yiannis Panayiotou, in his statements on Wednesday, noting at the same time that the average salary has increased over the last two years by 13%, approaching 2.5 thousand euros, the intermediate salary has increased by almost 11.5%, approaching 1.900 euros, and that employees with earnings below 1.000 have decreased by 30% over the last two years.
Responding to questions from journalists after the Council of Ministers meeting, Mr. Panayiotou referred to the recent data announced by the European Statistical Office for the first quarter of 2025 regarding the uniform labor cost, which, he said, "confirm the positive course of the Cypriot labor market and the effectiveness of government policy."
According to Eurostat data, he said, Cyprus recorded an increase of 4.8%, which significantly exceeds the average increase in hourly labor costs in the eurozone, which is limited to 3.4%, as well as the EU average, which is 4.1%.
At the same time, Cyprus is recording a positive trend in the increase in labor costs compared to the same period last year, meaning this year's increase is greater than last year's and is included in the six member states with the largest increase in hourly wages for the first quarter of 2025.
"The increase in the level of wages exceeds the increase in the cost of living. The level of the increase in wages is approximately three times the increase in the cost of living for the same period, positively affecting the gradual improvement of the purchasing power of employees," said Mr. Panayiotou.
We continue, he added, to methodically and effectively implement the governance program to improve the adequacy of salaries and the daily lives of citizens, to protect low-wage earners and to expand the middle class.
He explained that "the reality I describe is not virtual or fictitious. It is based on the same indicators with which the labor market situation is assessed in all EU member states and reflects a positive trend that is not positive for the government or for the Council of Ministers or for the President of the Republic or the Ministers."
"It is positive for our economy and for our society. And we want this positive trend to continue so that it becomes even more noticeable by the citizens themselves. We want to continue and improve this trend," he added.
Asked whether these figures could be an argument for employers not to increase the minimum wage, Mr. Panagiotou said that the data from the European Statistical Office "constitute an argument for the correctness of the government policy through which salaries and the quality of life of citizens are improved."
Therefore, he said, "this course must continue so that the wages of employees reflect the development course of the Cypriot economy so that the development dividend is distributed fairly among all factors of the production process, employees and employers."
Therefore, he added, "through the continuation of social dialogue and consultation on the issues that affect the strengthening of wage adequacy, I believe that by continuing this course, we will manage to have even more positive results, because despite the positive steps that have already been taken, we do not believe that we have reached the result that the government's planning foresees, which is the further strengthening of wage adequacy, and it appears from the available data that we are moving in the right direction with results that are measurable and tangible."
Responding to a question whether the government will propose an increase in the national minimum wage within the framework of the social dialogue that they are committed to initiating with the social partners, Mr. Panayiotou said that regarding the level of wages in Cyprus and the trend recorded in relation to their improvement, obviously from the data this is positive, confirming the correctness of the government policy.
13% increase in average salary in the last two years
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He explained that the average salary has increased by 13% over the last two years, approaching 2.5 thousand euros, the median salary has increased by almost 11.5%, approaching 1.900 euros, while "the minimum wage is neither a good salary nor a mediocre salary, it is the worst, the lowest salary that someone can receive in this country, and by government decision it has increased, having a positive effect on limiting the number of low-wage workers, where workers in our country who earn less than 1.000 have decreased by 30% in the last two years."
He stated that the revision of the national minimum wage is scheduled for January 2026 and according to the data "which we are all able to analyze and understand, the trend regarding wages, including the minimum wage, is towards improvement."
However, because a specific procedure is provided for the dialogue regarding the revision of the national minimum wage, the Minister pointed out, "this procedure will be followed, the views of the social partners and trade unions and employers' associations will be heard so that they can be appropriately evaluated and, in the end, appropriate decisions will be made through the dialogue."
We have about 6 months until January 2026, so there is enough time to take all the necessary actions in the appropriate manner, the Minister of Labor added.
Regarding issues concerning both the hotel industry and the construction industry, Mr. Panayiotou said, in response to a relevant question, that there are planned meetings following prior communication and consultation with the social partners, "so I believe that it would not be right for me to go into details in view of the planned meetings."
ATA
Regarding the issue of the dialogue on Automatic Indexation, Mr. Panayiotou said that the social dialogue on the future of the ATA mechanism is ongoing, "we are in communication with the social partners, we have scheduled meetings and if a constructive attitude is demonstrated by all sides, I believe that we can manage to reach commonly accepted results."
Source: KYPE
