The Cyprus Employers and Industrialists Federation (OEB) and the Cyprus Chamber of Commerce and Industry (CCCI) have accepted the President of the Republic’s proposed COLA Framework Agreement, following a crucial amendment to a controversial paragraph that employers had considered a “trap” leading to a full extension of the allowance across the private sector.

According to information obtained by Brief, the employers’ acceptance of the Framework was reached in principle on Monday afternoon.

An informal understanding between OEB and CCCI had been made to avoid any public disclosure of their acceptance before the leaderships of the four main trade unions—SEK, PEO, PASYDY, and DEOK—met to discuss the issue within the ongoing social dialogue on the Cost-of-Living Allowance.

However, the leak of this decision has reportedly caused irritation not only among employers but also within the trade union movement, as it is seen to pre-empt the internal decision-making processes of the other involved organizations.

Sources indicate that PEO has expressed serious reservations regarding the revised Framework, which are expected to be discussed during the joint meeting of the four union leaders later today.

Sources from the Presidential Palace confirmed to Brief that the employers’ organizations have accepted the Framework in principle. However, they emphasized that final approval from the trade unions is still pending.

As Brief had previously revealed, the proposed Framework provides for the gradual restoration of the ATA to 100% within 18 months:

• 80% as of January 1, 2026 (up from the current 66.7%),

• 90% as of July 1, 2026,

• and full 100% restoration by July 1, 2027.

The Framework introduces a 4% “cap”—meaning that if inflation exceeds 4%, only up to 4% will be factored into the ATA adjustment.

Additionally, the ATA will be granted once per year, provided that the annual real GDP growth rate of the previous year is positive.

The contentious paragraph in question appears to have been revised as follows: The national minimum wage will be adjusted every two years, and during the same period, COLA will also be applied. The revised wording clarifies the conditions under which ATA will be extended to more businesses, preventing any automatic or broad expansion across the private sector.