The rise in Cyprus’ minimum wage will not be “symbolic” but will reflect the economy’s positive growth and address real needs, Labour Minister Yiannis Panayiotou said on Thursday.

Addressing trade union PEO’s congress, Panayiotou said the consultative process for revising the minimum wage decree would conclude in the coming days, after which a new decree increasing it would be issued.

He added that the government had also reached an agreement on the cost-of-living allowance (CoLA), ending years of uncertainty.

The minister outlined the government’s priorities for the coming months, including reform of the pension system.

PEO general secretary Sotiroulla Charalambous criticised what she described as policies “placing dynamite” at the core of Cyprus’ labour relations system, particularly through the undermining of collective agreements.

She said there was also a lack of mechanisms to ensure agreed measures were properly implemented.

Charalambous stressed that PEO would continue to highlight that the Turkish occupation remained a key obstacle to sustainable growth and the progress of the working class.

She called for negotiations to resume from where they left off in 2017.

She also referred to global developments, including the concentration of wealth, rising poverty, and increased aggression by “dominant imperialistic circles”.

On Ukraine and Gaza, she reiterated PEO’s support for an independent Palestinian state and expressed solidarity with the people of Venezuela, criticising what she described as an “official EU policy” of military-driven economics.

Regarding the Cypriot economy, Charalambous noted that real GDP had grown by 55.8 per cent between 2015 and 2024, largely due, she said, to the struggles of the trade union movement, which also improved working conditions.

However, although Cyprus in 2025 was listed as the 13th richest country of Europe based on its GDP, it ranked 21st in the purchasing power of average salaries.

Charalambous furthermore said the government’s proposed tax reform did not make the system fairer for the majority of the people.

Regarding the pension system reforms, she pointed out that any changes should secure adequate and dignified pensions for all through the social insurance system.

On housing, Charalambous said the government must shift focus to social housing and the construction of low-cost homes.

She also pointed to future challenges for workers, including AI, robotics, digitalisation, and health and safety issues linked to climate change.

Akel secretary-general Stefanos Stefanou, attending the congress opening, said PEO had long charted the course for workers and would continue to do so for society as a whole.

The opening ceremony was also attended by the interior minister, the Cuban and Palestinian ambassadors, a representative of the Chinese embassy, MPs, trade union representatives from Cyprus and abroad, and employers’ organisations.

Head of Turkish Cypriot trade union Dev-Is, Semih Kolozali, said the struggle was common to all unions, which must remain united against neoliberal attacks, imperialist wars, oppression, tyranny, injustice and exploitation.