Cyprus appears to be heading toward an increase in the national minimum wage by the end of 2025, when the current decree is set to expire. According to information obtained by Brief, the government is currently reviewing different scenarios and drafting proposals aimed at adjusting the wage level to better support a significant portion of low-paid workers.

The matter is expected to be the subject of consultations with social partners, who will be invited to share their views as part of the policymaking process.

The International Labour Organization (ILO), which collaborated with the Ministries of Finance and Labour in establishing the minimum wage framework in Cyprus, supports the measure. According to the ILO, the minimum wage does not act as a barrier to contractual negotiations but helps raise the lowest salaries. It also promotes productivity, supports sustainable business growth, and contributes to economic development.

Under a European Union directive—which Cyprus has adopted—member states are required to monitor both the coverage and adequacy of minimum wages and to submit reports every two years to the European Commission. These reports must include the percentage of workers covered by collective bargaining agreements, the statutory minimum wage level, and the proportion of workers covered by the statutory minimum wage.

According to official sources, the core objective of Cyprus's national minimum wage is to ensure decent living conditions for workers by protecting them from low pay, while avoiding risks to the country’s economic competitiveness or creating negative distortions that could outweigh the benefits of wage increases.

As of January 1, 2024, the national minimum wage in Cyprus is set at €1,000 gross per month for full-time employment.

According to the current decree:

• Employees must receive at least €1,000 gross/month after six months of continuous full-time employment with the same employer.

• During the first six months, the minimum wage is set at €900 gross/month.

• Minimum wage rates are calculated on the basis of 40 hours of work per week.

According to Eurostat, Romania recorded the highest increase in minimum wage across the EU over the past decade, followed by Lithuania, Bulgaria, and Poland, with an average annual growth rate of 10%–14% between January 2015 and January 2025.

On the other end of the spectrum, France and Malta had the lowest annual increases at +2.1% and +2.9%, respectively.

Most EU countries enforce statutory minimum wages. However, five member states—Denmark, Italy, Austria, Finland, and Sweden—do not have such legislation in place.