The continued economic growth in Cyprus is generating new job opportunities and increasing staffing needs that exceed the capacity of the domestic labor force. As a result, the government has deemed it necessary to complement the local workforce by employing workers from abroad.

To streamline the employment process for foreign workers, significant improvements have been made over the past two years to accelerate application procedures. Labor Minister Yiannis Panayiotou announced that a new electronic platform for submitting and managing employment applications will be launched in March.

At the same time, the government has already implemented policies to expand access for foreign students to the job market and attract highly skilled workers. These measures leverage the mobility opportunities provided by the European Union’s Blue Card system.

Minister Panayiotou also announced that the Council of Ministers has approved a Foreign Worker Employment Framework, aimed at better regulating the employment of third-country nationals in the Cypriot labor market. The initiative seeks to support economic productivity while ensuring equal treatment for all workers.

The new framework introduces modifications to existing procedures, including the establishment of a Tripartite Advisory Committee, which will include representatives from the Ministry of Labour, trade unions, and employer associations. This committee will monitor the implementation of employment policies and ensure compliance with labor regulations.

Additionally, the framework updates the list of professions eligible for increased foreign worker quotas in sectors facing a documented shortage of local labor. It also allows for employee mobility within the same employer's establishments at a district level and, under certain conditions, on a nationwide scale.

As part of the initiative, foreign workers’ living conditions will be improved through the introduction of specific housing criteria. The maximum allowable deduction from gross basic wages for accommodation costs will increase from 10% to 25%, provided the housing meets the established standards.

Furthermore, labor market monitoring safeguards will be implemented, allowing authorities to revoke or deny the renewal of third-country employment approvals in response to negative trends in unemployment or wage levels for the domestic workforce.

The framework also includes provisions for mandatory participation in vocational training programs as a condition for continued employment in certain professions, ensuring that workers maintain the necessary skills and service quality standards.