The minimum wage currently in effect in Cyprus was implemented on January 1, 2024, following the revised decree from the Cabinet. The existing National Minimum Wage is set to remain in place for two years, until the end of 2025, at which point a new decree is expected to be issued for its revision.

Negotiations among all stakeholders (Ministry of Finance, Parliament, trade unions, labor associations, etc.) are likely to begin in mid-next year, when the economic data will be clearer regarding the fiscal space and capabilities of the Cypriot economy.

Nevertheless, an increase in the minimum wage is anticipated, even if only symbolically, due to inflation impacting Cypriot households and the macroeconomic performance of the country, with growth rates around 2% annually.

The Minimum Monthly Wage for any employee in the Republic was set at €1,000 for full-time employment as of January 1, 2024.

It is noted that the Minimum Monthly Wage for employees who, whether before or after January 1, 2024, have not completed six months of continuous employment with the same employer is set at €900 for full-time employment until they reach six months of continuous employment.

Approximately 25,000 workers were affected by the revision and increase of the National Minimum Wage.

It is also worth noting that the provisions of the decree do not apply to:

• Domestic workers, agricultural and livestock workers, and maritime employees.

• Any employee who is subject to more favorable provisions based on legislation, contract, practice, or custom.

• Workers to whom the "Minimum Wage in the Hotel Industry Decree of 2023" applies.

• Individuals receiving training or education required by legislation, practice, or custom for obtaining a diploma or for practicing their profession.

Moreover, the provisions of the decree regarding the Minimum Wage do not affect any legislation, contract, agreement, practice, or custom that provides more favorable conditions for employees.