The average salary has increased by 13 per cent in the past two years and those earning less than €1,000 per month have dropped by 30 per cent, Labour Minister Yiannis Panayiotou said on Wednesday.

He stated that the average salary is now approaching €2,500 per month, while the median salary has risen by 11.5 per cent to nearly €1,900 per month.

Speaking after a cabinet meeting, Panayiotou referred to Eurostat figures for the first quarter of 2025, saying that the data for Cyprus confirmed “the positive course of the Cypriot labour market and the effectiveness of government policy”.

The aim is for the positive picture to continue, Panayiotou said.

According to Eurostat, Cyprus recorded a 4.8 per cent increase in hourly labour costs — well above the eurozone average of 3.4 per cent and the EU average of 4.1 per cent.

Compared to the same period last year, Cyprus is now among the six EU member states with the highest increase in hourly wages in the first quarter of 2025.

“The increase in the level of wages exceeds the increase in the cost of living. The level of the increase in wages is approximately three times the increase in the cost of living for the same period, positively affecting the gradual improvement of the purchasing power of employees,” Panayiotou said.

Asked if these figures equipped employers with arguments against increasing the minimum wage, Panayiotou said they were an indication of the effectiveness of government policy.

“Therefore, this trajectory must continue, so that employees’ wages reflect the broader development of the Cypriot economy,” he said. He repeated the point when asked if the government intended to propose an increase in the minimum wage.

He added that a revision of the national minimum wage is already scheduled for January 2026, through consultation with social partners.

“We have about six months until January 2026, so there is enough time to take all necessary actions,” he added.

Panayiotou also touched on the cost-of-living allowance (CoLA), noting that discussions on its future are ongoing.

“We are in communication with the social partners, we have scheduled meetings and if a constructive attitude is demonstrated by all sides, I believe that we can manage to reach a mutually acceptable outcome,” he said.