The Committee for the Adjustment of the National Minimum Wage has just circulated its report, according to which the independent members propose an increase in the national minimum wage of between 7% and 11%.

Specifically, the following adjustments are proposed for full-time employees:

• Minimum wage after six months of employment with the same employer:
  from €1,000 currently to €1,077 – €1,115

• For newly hired employees:
  from €900 currently to €969 – €1,003

According to Brief, the report, according to the note sent to all social partners, substantiates the recommendation of the three independent members of the Committee regarding the adjustment of the national minimum wage.

According to the report, the evaluation was based on the following five parameters, which fall under the assumptions applied across all EU Member States:

• The purchasing power of the minimum wage

• Employment levels and unemployment rates

• The growth rate of the Cypriot economy and productivity

• Trends and levels of earnings

• The competitiveness of the economy

The report, as noted, reflects exclusively the joint position and documented assessments of the three independent members of the Committee, within the framework of the provisions of the decree and in alignment with the EU directive.

It is clarified that the recommendations do not constitute a common position of all Committee members.

The positions of employees and employers are recorded in separate reports.

In the explanatory report of the independent members, it is noted that the recommendation aims to maintain the purchasing power of low-paid workers, reduce the risk of poverty, and support a healthy, productive, and competitive economy.

At the same time, the proposal seeks further convergence of the national minimum wage with European wage adequacy criteria.

Procedurally, the Minister of Labour, after evaluating the report based on its recommendations, will submit a proposal to the Council of Ministers, which will then authorize Marinos Mousiouttas to issue the relevant decree.

The decree is expected to be issued before the end of the year.

The revision of the national minimum wage will be incorporated into the salaries of affected employees on 31 January.