President Nikos Christodoulides said on Monday he had had a “very productive” meeting the previous evening with employers organisations over the Cost of Living Allowance (CoLA).

“We are now waiting for the final decisions from the employers’ organisations,” he said.

Christodoulides said wider economic matters were also discussed, including the government’s planned tax reform.

He said he was pleased that employers’ organisations support the reform, which aims to strengthen the middle class, support families and, for the first time, provide substantial backing for Cypriot businesses.

The meeting was also attended by the ministers of finance and labour.

Final decision from the employers, he added, are expected in the next 24 hours.

The meeting followed one on Friday between the ministers of finance and labour with both unions and employers at which a government proposal was well received.

On Monday evening, Christodoulides will meet unions to discuss the same issue.

According to government spokesman Konstantinos Letymbiotis, the president’s meetings are part of the ongoing measures to bring the two sides together and reach agreement over CoLA.

The allowance, which adjusts wages in line with inflation, was suspended during the financial crisis and later partly restored.

Trade unions have been calling for its full reinstatement to protect workers from rising prices, while employers warn that such a move would raise labour costs and threaten business competitiveness.

Employers organisations are expected to hold a joint session on Wednesday to decide their final position on the issue.

Christodoulides said he does not expect additional meetings on the issue beyond the current round of talks.