Cyprus Mail 8 December 2025 - by Charalambos Stylianou
The minimum wage is set to rise to €1,125, outgoing labour minister Yiannis Panayiotou said on Monday during the formal handover to the new minister Marinos Moushiouttas.
He said 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 said the rise follows the government’s policy of linking the minimum wage to 58.5 per cent of the median wage.
The minimum wage was previously raised from €940 to €1,000.
Panayiotou said the median wage stood at about €1,500 when he took office and was projected to reach €2,000 in 2025. He also highlighted a 10.66 per cent wage increase for 19 occupations in the hospitality sector.
Moushiouttas said his priorities will include pension reform, reviewing the minimum wage, strengthening the social insurance fund, improving public service delivery, and tackling undeclared work.
He emphasised that these measures aim to improve the quality of life for workers and pensioners.
Calling for unity among social partners, employers and trade unions, he said the government’s programme remains unchanged and that the work of the ministry will continue within the established framework of tripartite cooperation.
Moushiouttas thanked Panayiotou for his groundwork and said he would continue consulting him on key issues.
Panayiotou, who served from March 2023 to December 2025, said he leaves office satisfied with the ministry’s achievements.
He pointed to an employment rate rising above 80 per cent, overall unemployment falling below 5 per cent, and youth unemployment dropping from 16.1 per cent to 13.1 per cent.
He added that the average wage rose from €2,202 to a projected €2,560. He said these developments have supported low-income workers and strengthened the middle class.
The outgoing minister also noted faster processing of social insurance benefits, reduced waiting times for foreign worker permits, and expanded support for working parents, including increases in maternity, parental and related benefits.
