Filenews 27 December 2025
The aim of the Government's decision is to safeguard the purchasing power of workers, without jeopardizing the viability of businesses, said the Minister of Labour, Marinos Mousiouttas, commenting on the reactions to the increase in the minimum wage.
Speaking on the main news bulletin of RIK television, Mr. Mousiouttas stressed that the role of the Ministry is a mediator, in order to maintain labour peace, to improve wages and at the same time for the economy to be able to absorb the increases.
On the other hand, there are strong reactions from employers.
The Federation of Employers and Industrialists estimates that the increase of about 8.8% exceeds the capabilities of the real economy and is not sufficiently documented on the basis of productivity.
According to OEB, the total cost for the employer exceeds €1,250 per employee, which – as it warns – may create pressure on marginally viable businesses, especially in the event of a new economic crisis.
There is also concern about possible inflationary pressures, through the passing on of costs to the consumer.
For their part, the unions judge the increase in the minimum wage as insufficient.
SEK states that the minimum wage still does not cover basic livelihood needs, especially for workers in retail, supermarkets, cleaning and security.
Despite the economic growth recorded, wages in Cyprus remain low in relation to GDP and productivity, while a review of the decision is requested before the issuance of the final decree.
The Secretary General of SEK, Andreas Matsas, stated that the workers who will receive the minimum wage are part of the group of workers who have no effect from the reform of the tax system and the Government should have been more sensitive.
The new minimum wage takes effect from January 1, 2026, with a two-year implementation horizon and a review in 2028.
Based on the decision of the Council of Ministers, the minimum wage is set at €979 for new entrants and at €1,088 after completing six months of employment.
The minimum wage remains in the spotlight and as everything shows, the dialogue will continue after the holidays.
