Dialogos

Urgent Correction of Wage Distortions and Labor Issues Needed

Published January 11, 2026, 07:02
Urgent Correction of Wage Distortions and Labor Issues Needed

Trade unions in Cyprus are pressing for an immediate correction of distortions in the minimum wage and the resolution of labor issues, as economic growth is not reflected in the wages of workers. Despite the increase in business profitability from 17.4% to 26.1% of GDP between 2010-2024, the share of wages decreased from 47.6% to 44.1%. The continued rise in the cost of living threatens to impoverish large segments of the workforce. The organizations are requesting a meeting with President Christodoulides and the Minister of Labor to discuss specific issues, such as a substantial upgrade of the minimum wage, expanding coverage of workers with Collective Bargaining Agreements, the Employment Strategy for Workers from Third Countries, and the implementation of the ERGANI II software. They emphasize that the minimum wage should be increased by 28% to reflect the country's development and by 26% to align with productivity. In a letter to the President, they highlight the divergence between economic growth, business profitability, and worker compensation. Although the Cypriot economy shows positive signs, such as a growth rate of 3.5%, a reduction in unemployment to 4.1%, and a limitation of public debt, workers are not benefiting accordingly. The trade unionists emphasize that the inadequacy of the minimum wage and the lack of progress on other labor issues create a gap between the wealth generated and the benefits received by workers, demanding immediate action to restore fairness and protect employees.