September 2022: The Cyprus Minister of Labour and Social Insurance, announced yesterday (31/8/2022) the establishment of the National Minimum Wage after the meeting of the Council of Ministers.
The Cyprus National Minimum Wage is set at 940 euros. For new employees, for the first six months of employment, it will be set at 885 euros (both gross). The implementation of the National Minimum Wage will begin on 1 January 2023, with a transition period available to allow for the economy and employers to adjust to this increase.
It is estimated that at least 40 thousand employees (40,000) in Cyprus will benefit from this legislation with an increase, in some cases, of up to 30% of the salary they were receiving up to now.
The introduction of the minimum wage also includes some sector exceptions. These include, mainly, professions related to shipping, domestic workers and farming and livestock workers. Persons receiving training for a degree or professional qualification are also excluded.
If an employer provides food and/or accommodation, it will be possible, by an agreement between the parties, to deduct from the salary 15% for food and 10% for accommodation.
The minimum wage will be revised by a newly appointed committee every 2 years and further clarifications are expected regarding the total of working hours, overtime pay and other details.
For further information, interested parties can contact our firm and our social insurance & payroll team >