Trade unions expressed satisfaction following this morning’s meeting at the Presidential Palace with President Nikos Christodoulides regarding the Cost of Living Allowance (ATA). The discussions led to the scheduling of a preliminary agreement signing at 2:00 PM today at the Presidential Palace.

According to PASYDY Secretary-General Stratis Matthaiou, the final framework defines a gradual restoration of ATA, beginning with 80% on 1 January 2026, rising to 90% on 1 July 2026, and reaching 100% on 1 July 2027. From that point onward, the ATA will be granted at full 100% every July. Its calculation will now take into account the average growth rate of the previous year, which must be positive.

Present at the morning meeting were representatives of SEK, PEO, DEOK, PASYDY, Labour Minister Yiannis Panayiotou, Finance Minister Makis Keravnos, Deputy Minister to the President Irini Piki, and Government Spokesperson Konstantinos Letymbiotis. They are expected to attend the signing ceremony later today, along with employers’ organisations.

Matthaiou said unions were satisfied with the outcome and reiterated the timeline for restoring ATA to full levels by mid-2027. He also confirmed that a new mechanism will apply a cap on ATA adjustments: when inflation exceeds 4%, the ATA will be calculated only up to that 4% threshold.

The framework also foresees a special expanded session within the Labour Advisory Body, which will issue recommendations during periods of economic crisis.

Matthaiou explained that the National Minimum Wage will now be tied to ATA through the inclusion of the Cost of Living Allowance amounts corresponding to the previous two years. The issue of how the minimum wage is adjusted will be reviewed again in 2028.

From the employers’ side, OEB Director-General Michalis Antoniou stated that while they have not yet examined the final text, they understand that the essence of the agreement remains unchanged following the unions’ meeting with the President. Specifically, the arrangement agreed earlier by employer organisations remains in place: ATA will be incorporated into the minimum wage every two years. He noted that the clause concerning incentives for employers to expand ATA has been reworded.

Antoniou also suggested that three separate documents may be signed today: one on ATA, one on the minimum wage, and one regarding incentives for employers.

All social partners have indicated they will make statements following the signing of the agreement at 2:00 PM.