Filenews 31 December 2022
As of January 1, 2023, the institution of the National Minimum Wage will be implemented for the first time in Cyprus, since the relevant decree of the Minister of Labor and Social Insurance, Kyriakos Kousios, enters into force.
The National Minimum Wage is set at €940. For the first six months of employment it will be €885, while at the beginning there will be a transitional period.
The establishment of the National Minimum Wage essentially benefits 40,000 low-paid workers, but those who work in agriculture, domestic workers and those who work in shipping are excluded. It also excludes persons who receive training or education for a degree or professional qualification.
Also excluded from the Decree are those who receive more favourable treatment through a contract, custom, practice or other Decree. If an employee has better benefits than those provided for in the Decree in no way are the best benefits affected.
Moreover, when the employer offers food and housing, he may, by agreement between the parties, deduct from the amount in cash 15% for food and 10% for housing. This is permissible only in the case of an agreement between employer and employee. The latter may, with 45 days' notice to the employer, be exempted from this part of the agreement.
In addition, for seasonal workers up to the age of 18, with seasonal work set at a maximum of two months, a rate of 25% can be deducted from the National Minimum Wage.
The first adjustment of the National Minimum Wage will take place on 1.1.2024 and from then on every two years, after the establishment of a nine-member committee, consisting of 3 representatives of the trade union movement, 3 representatives of the employers and 3 academics or experts on labour issues, who will advise the Labour Advisory Body, which in turn advises the Minister of Labor, who will submit a reasoned report to the Council of Ministers on the adjustment of the National Minimum Wage.
The criteria for adjustment will take into account the purchasing power of the National Minimum Wage, trends in employment levels and unemployment rates, variation in economic growth and productivity levels, diversification and trends in wage levels and their distribution, the impact that any change in the minimum wage will have on employment levels; relative and absolute poverty indicators, the cost of living and the competitiveness of the economy.
The Department of Labour Relations is responsible for the control and faithful implementation of the Decree.
