Hourly calculation of the minimum wage and establishing a specific formula for determining it are the two key issues unions and employers, respectively, will put on the table at their next meeting with the Labour Ministry.
The third meeting of the National Minimum Wage Review Committee, which comprises unions, employers, and the Labour Ministry, took place yesterday to revise the amount workers receive.
At the next meeting, scheduled for this Friday, 5 December, each organisation participating in the committee will present its final positions. On 8 December, a final document—not an agreement—will emerge containing the official positions of all partners.
From there, the process and final decision differ from those followed for the automatic cost of living adjustment. The final decision rests with the government, with the Cabinet deciding and issuing the relevant decree, which will be valid for two years and reviewed again in 2028.
According to what has been said so far, the union side will insist on the hourly calculation of the minimum wage, an issue raised during discussions when it was established.
PEO General Secretary Sotiroula Charalambous recently said there cannot be dignity in work without a substantial increase in the minimum wage and its hourly calculation.
Regarding hourly calculation, she noted that someone working 40 hours earning €1,000 is not the same as someone working 38 hours earning €1,000.
The employer side insists on establishing a specific formula for determining the minimum wage. KEVE General Secretary Philokypros Rousounidis said specific factors must be considered, such as growth rates, productivity, unemployment and any impact a potential minimum wage increase would have on employment.
Employers also note that the increase cannot be calculated based on 60% of the median wage when other advanced countries operate at considerably lower levels.
The key question is clearly the amount of the increase, as an increase is considered certain. This follows recent statements by the Labour Minister, who said a minimum wage increase from January 2026 is assured.
He noted that provided the economy’s trajectory remains positive, it is logical that those receiving the minimum wage—around 55,000 people—should benefit.
According to the relevant EU directive, member states use indicative reference values to assess minimum wage adequacy, such as 60% of gross median wage and 50% of gross average wage.
In a social media post, SEK General Organiser Panikos Argyridis argued that for the national minimum wage to be adequate, it should be around €1,128 per month, up from €1,000 today, citing the European directive and available data on median wages in Cyprus.
Today, he wrote, Cyprus’s national minimum wage stands at 53.2% of the median wage, which is €1,881 based on official 2024 figures.
The European minimum wage directive cites 60% of the median wage as an indicative value for minimum wage adequacy, meaning in Cyprus it should be around €1,128 per month, he added, clarifying that this should be the target to reach gradually.
What applies today
From 1 January 2024, the minimum gross monthly wage in Cyprus was set by the state through legislation at €1,000 for full-time employment.
However, for workers who either before 1 January 2024 or afterwards have not completed six months of continuous employment with the same employer, the minimum is set at €900 for full-time work until completing six months of continuous employment.
The decree provisions do not apply to domestic workers, agricultural workers, and maritime workers, or to workers covered by the 2023 minimum wages in the hotel industry decree.