Philenews

Continued Turmoil Over Minimum Wage Decision

Published December 31, 2025, 07:16
Continued Turmoil Over Minimum Wage Decision

The government's decision to revise the minimum wage has sparked strong reactions from both trade unions and employer organizations, resulting in unrest on the labor front. The decree is expected to be issued today, with the decision taking effect from January 1, 2026, for two years. Unions are calling for the decision to be revoked, considering it inadequate in relation to the cost of living, while employers express fears about the economic impact on businesses. Trade unionists argue that setting the minimum wage at 979 euros (for new entrants) and 1,088 euros (after six months) is insufficient, especially for workers on the lowest wage scale. They also point out that the decision does not benefit those who do not fall within the tax brackets. Employers, for their part, consider the increase (8.8%) economically unfounded, with the total cost per employee reaching 1,255 euros per month. The government appears to be sticking to its decision, but public criticism from the president of DIKO, Nikola Papadopoulos, has prompted mobilization and a clarification is expected regarding the update study of the project. The discussion focuses on how the consultant will be selected and whether the bidding process will be followed or a direct assignment will be made. In summary, the dispute over the minimum wage remains open, with both sides maintaining their positions and the government trying to find a solution that satisfies as many people as possible. The development of the situation is expected to affect the labor climate in Cyprus in the coming months.