Starting next week, the government will finalise the adjustment to the national minimum wage, effective from January 1, 2024, through a new decree.
There is speculation that the adjustment may bring the existing gross minimum wage of €940 closer to a four-digit figure.
Discussions at yesterday’s session of the Labour Advisory Body revealed diverse recommendations and proposals from social partners regarding the height of the minimum wage increase.
Trade unions are advocating for a substantial raise, citing intense inflationary pressures and the two-year interval until the next revision.
Meanwhile, employer organisations are adopting a more restrained stance, acknowledging the necessity of an increase but avoiding commitment to specific figures.
While specific amounts were not disclosed, there were suggestions for a percentage-based increase, potentially raising the minimum wage to €980 gross after six months of employment with the same employer or even reaching €1,000.
It is anticipated that the agreed-upon percentage increase will be in the single digits and will apply to both the current minimum wage of €940 and the hiring minimum of €885, despite employer suggestions to keep the latter unchanged.
Clarity on the matter is expected next week, pending the report from the Adjustment Committee, scheduled to convene next Monday. Subsequently, the Labour Advisory Body will meet again next Tuesday to present the final opinions of social partners, which will be considered by the Minister of Labour before the issuance of the new decree before Christmas.
In a statement yesterday, the Minister of Labour reiterated the government’s intention to issue the decree before Christmas. He stated that the dialogue would conclude within the next few days, and decisions would be announced by the government next week after a thorough evaluation of all data.
Simultaneously, the minister acknowledged differing opinions on the height of the increase, emphasising the advisory role of social partners. While consensus exists on the direction of the increase, discrepancies persist regarding the specific amount and other details.
One unresolved issue is the demand from trade unions for hourly calculation of the minimum wage, a matter not clarified in yesterday’s discussions.
Renewed discussions on foreign workers
In yesterday’s session of the Labor Advisory Body, discussions extended to the employment strategy for third-country nationals, particularly students from abroad, and the integration of immigration management with the labour market.
The prolonged talks on the topic did not yield a conclusive result. Consequently, the Minister of Labour urged all parties to submit their proposals and recommendations promptly.
This pertains to an issue of significance for both employers and trade unions, aiming to expedite the convening of the monitoring committee established under the new employment strategy for third-country nationals in Cyprus.