The tripartite cooperation between the government, employers and employees has led to significant economic benefits during the first two years of President Nikos Christodoulides’ administration, Labour Minister Yiannis Panayiotou said on Friday.

Speaking after a meeting between the president and trade union leaders, Panayiotou highlighted the role of social dialogue in boosting employment and increasing wages. He noted that unemployment rates for 2024, announced on Thursday by the statistical service, are at their lowest since 2008, bringing Cyprus closer to full employment.

The employment rate has reached 80 per cent, the highest ever recorded, while average monthly earnings have risen by 8 per cent over the past two years. Median wages are expected to show double-digit growth, approaching €1,900.

Panayiotou outlined key timelines for major labour policies. The renewal of the cost-of-living allowance (CoLA) agreement is scheduled for June 2025, while the national minimum wage decree is set for revision in January 2026, with discussions concluding earlier in 2025. Pension reform bills will be submitted to parliament before the end of this year.

He acknowledged differences in perspectives between trade unions and employers on CoLA and the minimum wage but stressed that social dialogue would ensure balanced outcomes.

“Strengthening wages is a government priority,” he said, adding that efforts will continue to ensure wage increases keep pace with economic growth.

Asked about Eurostat data indicating that 20 per cent of the workforce remains in low-paid jobs, Panayiotou said the government has taken significant steps to support lower earners. The national minimum wage has risen by approximately 6.5 per cent, while wages in the hotel industry have increased by over 10.5 per cent, positively impacting overall wage growth.

He acknowledged that income disparities persist but expressed confidence that the upward trend in wages would help bridge the gap between earnings and the cost of living.

“The negative trend of past years has been reversed, and we are committed to ensuring fair wages for all workers,” he said.

Trade union leaders used the meeting to push for further improvements in working conditions. Peo secretary-general Sotiroula Charalambous stressed the need for stronger enforcement of collective agreements and better protections for low-wage workers.

“We expect tangible results that will benefit all workers,” she said.

Sek secretary-general Andreas Matsas called for the full restoration of CoLA, an increase in the minimum wage, and pension reforms. He also urged the government to implement EU labour standards and address employment conditions for third-country workers.

The unions also secured a commitment to convene the economic advisory committee to discuss tax reforms and a meeting of the labour advisory body with the president to address employment policies and industrial peace.