Cyprus: €940 minimum wage to be introduced from 2023

The minimum wage is to be introduced in the western part of Cyprus by 2023, having previously been announced for this year (see article n°12845). The level of pay will be set at €940 after six months of one’s contract and €885 for new employees. The wage will nevertheless be adjusted on 1 January 2024 before further adjustments every two years by a joint committee. Despite the rate of inflation, which hit 11% in July, the wage will not initially reach €1,000 per month, causing discontent among trade unions. Furthermore, in situations where the employer provides housing or food allowances, a percentage – 10% and 15% respectively – can be deducted from the minimum wage if a collective agreement is signed. According to the Cypriot labour minister Kyriákos Koúsios, the reform should benefit more than 40,000 people in the country. However, domestic, agricultural and transport workers will not be affected by the measure. Cyprus thus joins the 22 European countries that have introduced a statutory minimum wage, adopting the ninth-highest pay level among those nations. Denmark, Italy, Austria, Finland and Sweden are yet to do so (see article n°13080).