Non-Cypriots overrepresented in top and bottom wage groups

The average gross monthly earnings of employees in Cyprus rose by 5.1 per cent in 2024, reaching €2,483, according to a report released on Tuesday by the state statistical service (Cystat).

The median gross monthly earnings stood at €1,881, showing the midpoint of all wages, meaning that half of employees earned less than this amount and half earned more.

The difference between the average and median points to persisting wage inequality, as higher salaries lift the average figure above the level earned by most workers.

The average gross wage refers to total pay before deductions for social insurance and taxes.

The median wage indicates the middle value, and the gross amount includes regular and irregular payments such as the cost-of-living allowance, bonuses, and overtime.

The statistical service reported that in 2023, the average wage had stood at €2,363, representing an increase of 7.3 per cent that year.

The highest concentration of employees, 14.2 per cent, earned between €1,000 and €1,249 per month.

This was followed by 11.6 per cent who earned between €1,250 and €1,499, and 11.2 per cent who earned between €1,500 and €1,749.

By economic activity, the lowest average gross monthly earnings were observed in agriculture, forestry and fishing at €941.

The highest average gross monthly earnings were recorded in financial and insurance activities at €4,710.

Cystat recorded a decrease of two per cent in real estate activities and 0.8 per cent in mining and quarrying, both of which employ a small number of workers, making them more susceptible to fluctuations.

In all other sectors, the statistical service added, earnings increased compared with 2023.

The most significant rise was seen in information and communication (ICT), where wages grew by 8.1 per cent.

This was followed by human health and social work activities with 7.6 per cent, and water supply, sewerage, waste management and remediation activities with 6.9 per cent.

The manufacturing sector registered an average monthly salary of €1,870, up 5.2 per cent, while construction stood at €1,805, up 3.1 per cent.

Wholesale and retail trade, including the repair of motor vehicles, reported an average of €1,781, up 4.8 per cent, while accommodation and food service activities reached €1,583, marking a 5.8 per cent increase.

Transportation and storage employees earned an average of €2,658, a rise of 5.1 per cent, while those in education earned €2,307, up 5.3 per cent.

Public administration and defence, including compulsory social security, had average earnings of €3,283, an increase of 4.1 per cent.

Within this category, government employees, including the civil service, education and security forces, earned €3,475, while other public bodies reported €2,439.

Arts, entertainment and recreation saw an average of €2,205, up 5.7 per cent, and other service activities reported €1,730, an increase of 4.2 per cent.

The data also distinguished between Cypriot and non-Cypriot employees.

The average gross monthly earnings of Cypriots were €2,506, marking a 5.4 per cent rise compared to the previous year.

For non-Cypriots, the average was €2,434, representing a 4.3 per cent increase.

Median earnings for Cypriot employees stood at €2,053, while for non-Cypriots they were significantly lower at €1,544.

Cystat reported that non-Cypriots had higher percentages than Cypriots in both the lowest earnings group, those earning under €1,500, and the highest group, those earning €6,000 or more per month.

The breakdown by sector and citizenship showed that Cypriots earned between €1,677 in agriculture and €4,129 in financial and insurance activities.

Non-Cypriots earned between €650 in agriculture and €6,172 in the same sector.

Among Cypriots, information and communication workers earned €3,197, while non-Cypriots in the same field earned €5,083.

In terms of the manufacturing sector, Cypriots earned €2,002 compared to €1,628 for non-Cypriots.

Moreover, in the education sector, Cypriots earned €2,280, slightly less than non-Cypriots who earned €2,428.

In public administration and defence, Cypriots earned €3,278 compared to €3,444 for non-Cypriots.

The statistical service explained that its data are compiled from the records of the social insurance services, covering all sectors of economic activity except for household employers and extraterritorial organisations.

It further stated that persons whose remuneration indicated no regular work during the reference period were excluded, as were those who only received arrears or worked limited hours.

Earnings include the basic salary, cost-of-living allowance (CoLA), overtime pay, holiday fund contributions, and any other allowances received by employees during the reference period, including bonuses and 13th or 14th salaries.

The service clarified that the category “Cypriots” includes both Greek Cypriots and Turkish Cypriots as reported in the Social Insurance records, while “non-Cypriots” refers to all other employees.