Philenews

Cyprus: Hourly Labor Costs Rise by 2.7% in Q4 2025

Published March 17, 2026, 12:16
Cyprus: Hourly Labor Costs Rise by 2.7% in Q4 2025

According to preliminary data from the Statistical Service of Cyprus, hourly labor costs increased by 2.7% in the fourth quarter of 2025 on an annual basis. This increase is driven by both wages and salaries (a 2.7% increase) and non-wage costs (a 2.9% increase). On a quarterly basis, seasonally adjusted hourly labor costs rose by 0.7% compared to the previous quarter. This increase applies to both wage and salary costs and non-wage costs. These figures indicate a continued upward trend in labor costs in Cyprus, influenced by both rising wages and increasing non-wage costs, such as social security contributions and other benefits. The increase in labor costs may have implications for the competitiveness of Cypriot businesses, as well as for employment. However, rising wages can also contribute to stimulating domestic demand and economic growth.