Filenews 2 March 2025
The substantial emphasis placed by the Ministry of Labour and Social Insurance on the methodical implementation of the Governance Programme of the President of the Republic has brought about specific results that serve the public interest with a focus on labour. The objective evaluation of the real data leads to positive conclusions about the results of the first two years in the field of work, which are felt in the daily lives of citizens:
Employment reached 80%, which is the highest rate recorded over time, unemployment fell to 5%, which is the lowest rate in the last fifteen years, the number of unemployed decreased by 18.6% and the labour market is strengthened through legal procedures with workers from abroad. Participation in training programmes focusing on digital and green skills increased by almost 30%. Wages improved with increases in the fixed minimum wages from 6.4% to 10.66% and with a recorded increase in the average wage by 8.5% that puts it at €2390.
As a result of the increase in wage earnings, Social Insurance Fund pensions were increased in the basic part by 5.94%, the largest increase since 1996, affecting more than 160 000 pensioners. A significant improvement was achieved in the response to citizens, without many months of delays in the payment of benefits with an acceleration of up to 40%, and without the thousands of missed calls of the past. The benefits of the Social Insurance Fund were significantly strengthened, affecting tens of thousands of parents, as maternity leave for new mothers was extended, the amount of childbirth allowance was increased, while the beneficiaries were expanded and the duration of parental leave was extended.
Through social dialogue, large collective agreements in important sectors of the economy were renewed with a long-term horizon until the end of 2027 and workers' benefits were strengthened according to the potential of the economy, and labour peace, normality and stability were ensured for the continuation of our country's development course.
The labour achievements of the first two years are important and we continue to achieve more because work is at the core of people-centred policy and is the focus of human life from employment to retirement, as a driving force of the economy and a cohesive element of society.
EVALUATION OF THE MINISTER OF LABOUR AND SOCIAL INSURANCE
The hard times are coming for Yiannis Panagiotou
By Angelos Angelodimos
It is well known that the most "popular" Ministries in Cyprus are Foreign Affairs and Finance. The Interior is considered somewhat like a Superministry, due to the extent of the branches that fall under it, while their own particular importance is the Health and Defense Departments. The Ministry of Labour, although not considered very popular, has recorded its own distinct history in Cypriot society. It is the most anthropocentric ministry, since it manages the salaries and pensions of citizens. It is the Ministry that is responsible for any social reforms, such as the ATA, the minimum wage, the Provident Funds. It manages the Social Insurance Fund. It talks to employers and trade unions about renewing contracts and is charged with maintaining labour peace. It is the Ministry headed by historical executives, starting with Tassos Papadopoulos, but also later by people such as Andreas Mousiouttas, Makis Keravnos and Zeta Emilianidou.
Therefore, Yiannis Panayiotou in 2023 took on a chair with a heavy legacy, but also particularly important issues to manage. The difficult times for Yiannis Panayiotou are coming, since most key issues will have to be closed or tracked for resolution within 2025. Having inherited the ATA and Minimum Wage agreements, Yiannis Panayiotou will have to renew the ATA agreement by June and the Minimum Wage agreement by the end of the year. At the same time, the Christodoulides government had committed to reform the pension system and this commitment is called upon to be implemented by Yiannis Panayiotou. As mentioned above, the difficulties are coming for the Minister of Labour.
Currently, Yiannis Panayiotou is credited with the renewal of collective agreements in the hotel and construction industry, as well as in public transport. That is, contracts in vital sectors of the economy, which had been pending for years. On the other hand, his tenure in these two years has been marked by the largest strike in the country, in the ready-mix concrete sector. However, the part of labour relations is something that changes according to the wants and aspirations of each side. The challenge for the Ministry, and especially for the minister, is to be able to keep the balance, so that on the one hand labour peace is maintained and on the other hand the economy develops with viable businesses and a satisfactory standard of living for workers.
