In recent deliberations, the Ministerial Council has decided on a crucial increase in the minimum wages for workers in the hospitality sector, including those under the ATA. Giannis Panagiotou, the Minister of Labor, confirmed the decision during a post-meeting interview. A decree will be issued soon to facilitate the wage increase, which will be retroactive from June 2023.

Mr. Panagiotou emphasized the significance of this increase, stating, "This raise will greatly benefit a large number of low-wage workers in the hotel industry." When asked about the date from which workers would start receiving the increased wages, he clarified that it would be effective from June 2023.

Additionally, the Ministerial Council accepted a proposal for the introduction of a bill to the House of Representatives. This is set to address overdue contributions to the Social Insurance Fund, ensuring beneficiaries of the EEE and public assistance recipients are exempt from legal actions concerning their contribution delays. Panagiotou noted that these measures had been in place in previous years and will now be extended until July 1, 2024.

In other economic developments, the Ministerial Council approved an action plan to provide incentives related to mergers and acquisitions of small to medium-sized enterprises (SMEs). Makis Keraunos, the Minister of Finance, remarked that the goal is to give a decisive boost to these businesses' growth using these incentives.

Minister Keraunos underlined the importance of SMEs in the nation's economic fabric, mentioning, "SMEs constitute about 93% of all businesses in Cyprus." He highlighted the challenges their size poses to their growth and competitiveness, especially in achieving economies of scale.

The action plan is structured around three main pillars, as detailed by Minister Keraunos

1. A comprehensive framework to support and change the culture of business mergers and acquisitions.

2. Modernizing the legislative framework and reducing bureaucracy to streamline and simplify the relevant processes.

3. Improving access to financing and promoting mergers and acquisitions, especially in specific sectors of the economy.

Finally, Keraunos announced an extension of the subsidy on electricity by AHK for vulnerable groups for an additional month. This move aims to address a minor issue that had arisen in the scheme's pricing, offering an extended reprieve for the beneficiaries.