The minimum wage will be raised to €1,125, outgoing Cypriot labour minister Yiannis Panayiotou confirmed during Monday’s formal handover to newly appointed minister Marinos Moushiouttas. Panayiotou said the increase reflects the 2024 median wage and the cost-of-living allowance, following the government’s policy of tying the minimum wage to 58.5 per cent of the median. The rate had previously risen from €940 to €1,000.
He noted that the median wage in Cyprus was roughly €1,500 when he took office and is projected to reach €2,000 in 2025. He also highlighted a 10.66 per cent wage rise for 19 occupations in the hospitality sector.
Setting out his plans, Moushiouttas said his priorities include pension reform, a review of the minimum wage, strengthening the social insurance fund, improving public service delivery, and combating undeclared work. He said these efforts aim to improve quality of life for workers and pensioners. Calling for unity among employers, unions and social partners, he stressed that the government’s programme remains unchanged and that the ministry will continue to operate within the established framework of tripartite cooperation. He thanked Panayiotou for his groundwork and said he would continue consulting him on key matters.
Looking back on his term, Panayiotou — who served from March 2023 to December 2025 — said he leaves office satisfied. He cited an employment rate above 80 per cent, overall unemployment falling below 5 per cent, and youth unemployment dropping from 16.1 per cent to 13.1 per cent. Average wages rose from €2,202 to a projected €2,560, developments he said have supported low-income workers and strengthened the middle class.
He also pointed to faster processing of social insurance benefits, reduced waiting times for foreign worker permits, and expanded support for working parents, including higher maternity, parental and related benefits.
