The Cypriot Minister of Labor, Yiannis Panagiotou, announced on Wednesday that the monthly minimum wage will be raised to €1000, following a decision by the Council of Ministers.

Minister Panagiotou stated, “In evaluating all data and implementing the government program of the President of the Republic, the decision was made to issue the 2023 Minimum Wage Decree, based on the proposal of the Ministry of Labor and Social Insurances. This decree stipulates that the monthly minimum wage for full-time employment, after six months of continuous employment, will increase from €940 to €1000.”

When asked about the impact of this change on the national minimum wage, Mr. Panagiotou estimated that approximately 25,000 workers, primarily low-wage and often vulnerable due to their low specialization and not covered by collective agreements, would benefit.

Mr. Panagiotou also mentioned that improvements in calculating the minimum wage based on working hours are being promoted, emphasizing the importance of refining the regulatory framework regarding working hours and enhancing technological infrastructures to monitor these regulations.

The Minister emphasized that the government, in line with its people-centric policy aimed at strengthening social cohesion, supports the gradual improvement of workers' earnings in accordance with the economy's capabilities.

He highlighted that the government's targeted policies are focused on low-wage workers, especially the lowest earners who are protected exclusively through the issuance of government decrees to increase their wages. The ultimate goal, he noted, is to reduce their risk of poverty and social exclusion.

Simultaneously, the government operates within the characteristics of a free-market economy, supporting entrepreneurship and enhancing the country's developmental prospects while maintaining fiscal discipline and socio-economic responsibility.

He added that with a five-year horizon, the Christodoulides Government adopts the reference point of 60% of the national median gross wage and promotes the approach of this target in line with the developmental prospects and socio-economic data of the Cypriot economy, setting specific limits so that the decided wage increases are within the actual capabilities.

He noted that the government's five-year planning is evolving gradually, taking into account economic and social developments. "We are optimistic that the outcomes will be positive for everyone," he said.

In response to a question about whether the decree would include an hourly payment of the minimum wage, Mr. Panagiotou stated that an hourly rate is not provided, noting that improving the calculation method related to working time is included in the government's planning, with steps already being taken in this direction.

The Minister mentioned that the next decree on the national minimum wage is scheduled to be issued in two years, with the subsequent one after four years.