The effort to find a workforce in various sectors of the economy continues unabated, as shown by the relevant data of the Ministry of Labour. The full-time employment conditions prevailing in the Cypriot market, combined with the growth of the economy, turn everyone's eyes to third-country nationals.
According to data from the Ministry of Labour, for the period January – September 2026, 3,210 applications from employers were received, for the employment of 21,057 third-country nationals. As has been said in the recent past, most of the needs are found in the construction industry, retail and catering. There are also needs for specialized staff in technology companies, while during the summer season, additional needs arise in the hotel industry.
Full-time
Based on the above, the goal of the Ministry of Labour for 2027 is to maintain fast and reliable procedures, to update the Framework for the Employment of Foreign Workers and to further computerize the procedures. Regarding the broader labour market, it is noted that it remains in full-time conditions, with unemployment remaining consistently below 4% in the first six months of 2026. The average registered unemployed in the period January – September 2026 was 10,662 people, while 27,333 vacancies were notified to the Public Employment Service and 2,274 placements were made. As it is added, the sponsorship schemes of the Department of Labour for the recruitment of unemployed women (1,257 participations – sold out), young people aged 15 – 29 not in education and training (657 placements), unemployed over 50 years old (279), inactive women with flexible arrangements (93), people with disabilities (121), people with chronic diseases (249) and released prisoners (126) will continue to be implemented in 2027.
The above data are included in the note of the Ministry of Labour, which has been prepared on the occasion of the upcoming (Monday 16/11) examination of the budget for 2027, as well as the Medium-Term Financial Framework 2027 – 2029 by the Parliament. Special reference is made to the part concerning the pension reform, as well as labour relations, the issue of safety and health at work, as well as the issue of skills and productivity. However, as expected, most of the note is spent explaining the elements related to the reform of the pension system.
Pension
The main provisions of the government bill concerning pillars "0" and "1" are:
• Pension increases from 5% to 60%, which will be paid in instalments within three years (30% in the first year, 30% in the second and 40% in the third), with a recalculation and comparison with the existing system for 15 years, so that no pensioner receives a lower amount than what he would receive under the existing system.
• Guaranteed minimum increase of €30 per month for existing pensioners of the Social Insurance Fund with a pension of up to €600.
• Granting basic insurance supplements to existing pensioners and those who retire in the first five years of implementation, as well as recognition of a considered basic insurance to each existing and future pensioner.
• Support for people who were justifiably out of the labour market, such as parents with caring responsibilities, informal carers, students, people with disabilities and young people entering the labour market.
• Relief of the actuarial reduction for retirement at the age of 63.
• Expansion of the Fund's funding base, with a new obligation to contribute from income earners.
• Maintenance of the social pension even after the end of the transitional period, with the attribution of income criteria.
Increases up to €200
About 123,000 existing pensioners are expected to benefit from the reform, of which more than 50,000 will receive an increase of more than €100 per month and more than 10,000 people will receive a monthly increase of more than €200.
In addition to the above, it is pointed out that the social dialogue on the second pillar (Provident Funds) continues, which since November 9 has been discussed in weekly meetings of the Labour Advisory Body, with the aim of reaching a framework agreement on the basic principles.
The 2027 Budget includes appropriations for information campaigns on pension reform, actuarial and advisory services, as well as an amount of €5.5 million. for the continuation, with national resources, of the project "Reform of the Social Insurance System and Restructuring of Social Insurance Services", after the end of the Recovery and Resilience Plan.
Financial data for the budget
The budget of the Ministry of Labour for the years 2027, 2028 and 2029 amounts to €998 million, €1.056 million. and €1,131 million. respectively, compared to the budget of €956 million. in 2026. It shows an increase of €42 million. for 2027, a further increase of €58 million. for 2028 and even a further increase of €75 million. for 2029.
The above amounts do not include the expenses for the projects co-financed by the European Social Fund amounting to €19 million, €9 million. and €5 million. for the years 2027, 2028 and 2029 respectively, which are covered by the budget of the Directorate-General for Development (DG).
In conclusion, the total budget of the Ministry of Labour for the years 2027, 2028 and 2029, including the costs of co-financed projects, amounts to €1,017 million, €1,065 million. and €1,136 million. Respectively, compared to the corresponding budget of €985 million. of 2026.
