Despite the positive economic growth in Cyprus and the generally strong performance of various sectors in recent years, these improvements have not translated into increased real disposable income for Cypriot workers. The median equivalised disposable income in real terms shows how income levels have changed over time, after removing the impact of inflation.

According to Eurostat, Cyprus experienced a 1.8% decrease in its median equivalised disposable income in real terms in 2023 compared to 2010. This decline positions Cyprus as the second-worst performer among EU member states, surpassed only by Greece, which saw a sharp 28.4% drop.

While the median disposable income across the European Union has increased by 18.5%, with countries like Romania achieving an impressive 140.4% rise, Cyprus remains among the few nations with declining real income levels. Other countries in a similar position include France (-1,8%), Italy (-1,0%), and Spain (-0,3%), which also saw a decrease in real disposable income. The Baltic countries, Poland, Bulgaria and Hungary, also recorded median incomes increasing by more than half.