Philenews

Wealth Inequality in Cyprus: Everything Has Been Turned Upside Down – Historic High

Published January 4, 2026, 06:16
Wealth Inequality in Cyprus: Everything Has Been Turned Upside Down – Historic High

Wealth inequality in Cyprus has increased significantly in recent years, despite strong economic growth. Data shows that the increase in GDP and productivity has not translated into a corresponding increase in workers' wages. Cyprus ranks low compared to other Eurozone countries in terms of employee compensation as a percentage of GDP, while income tax is less progressive. The European Commission report points out that inequality is decreasing less in Cyprus compared to other EU countries, due to less progressive taxation and limited social spending. The recent decision on the national minimum wage is considered a step in the right direction, but further effort is needed to maintain social cohesion.