A significant strengthening of compliance and a noticeable reduction in delinquency in the labour market is recorded for 2025 by the Inspection Service, according to data held by Fileleftheros.
As mentioned, the Service, which operates under Law L.81(I)/2020, has as its main mission the control of the implementation of labour and social legislation in all sectors of the economy, with the aim of protecting employees and ensuring conditions of fair competition.
Nearly 8,000 inspections
During 2025, a total of 7,920 inspections were carried out, of which 6,544 concerned employers' premises. In the context of these audits, 16,366 employees were examined, with the Service identifying 1,009 cases of undeclared work. For the violations found, 509 fines were issued, reflecting, as pointed out, the systematic implementation of the legislation.
Particular emphasis was placed on tackling illegal work, as 1,095 illegal employees were identified. Delinquency rates stood at 1.48% for Cypriot workers, 2.41% for EU workers and 16.33% for third-country nationals. According to the Service, these figures confirm that targeted interventions and re-checks contribute substantially to strengthening employers' compliance.
Citizens' complaints
At the same time, in 2025, the Service handled 571 citizen complaints, which concerned undeclared work, wage differences, application of the minimum wage and rest hours issues.
As reported in "F", complaints are a critical tool for detecting irregularities and activating immediate control interventions in the labour market.
The violations are mainly found in the catering, construction and retail sectors. In these sectors, the inspectors proceeded with payroll checks, examination of foreign workers' permits, employee interviews and cross-checks with Social Insurance. In addition, in 2025, 199 fines were imposed for violations of other legislations, totalling €201,660.
Increase in employment and working hours
At the same time, the overall course of the labour market presents a positive picture. According to the Statistical Service, in the second quarter of 2025, an increase in employment of 1.8% was recorded in total employees and an increase of 2.2% in actual hours worked.
The total number of employees amounted to 508,291 people, of which 455,484 were employees and 52,807 were self-employed. The largest increases were recorded in the sectors of Information and Communication, Wholesale and Retail Trade, Repair of Motor Vehicles, as well as in Hotels and Restaurants.
Particular emphasis was placed in 2025 on inspections in barbershops and hairdressers, a sector with increased specificities in terms of employment status. According to data from the Inspection Service, a total of 210 inspections were carried out, of which 90 concerned employers and 120 self-employed.
During the inspections, the employment of 171 employees was found, with 8 cases of undeclared work, a percentage corresponding to 4.67%.
At the same time, 56 foreign workers were identified, of which 16 were deemed illegal, a percentage of 28.57% of the employees. For the violations, six acts of administrative fine were imposed, totalling €20,500, while two fines for violations of other legislation amounting to €500 were also recorded. It is noted that 26 inspections were carried out outside Public Service hours, in the context of intensified controls.
Goals for the next period
As stated by the Inspection Service, the main goals for the next period are to increase audits, strengthen cooperation with other state services, upgrade the training of inspectors and operate a new electronic platform. The platform will allow anonymous complaints, monitoring of their progress and automatic updating of inspectors.
The Service emphasizes that the effort will continue with intensity, especially in areas of high delinquency, with the aim of a fair, transparent and essentially protected labour market.
