The minimum wage in Cyprus is important. Unlike many EU member states, Cyprus has no national minimum wage. There is, however, a minimum wage for certain professions, such as hospitality and catering. This is set by the Council of Ministers and is called the 50th percentile wage. In other words, it is intended for vulnerable workers. However, it is not a guaranteed minimum wage. So, it is important to understand what you’re getting into when talking about minimum wage in Cyprus.
The minimum wage is set by the Council of Ministers
In Cyprus, the minimum wage is decided by the Council of Ministers. This body sets the minimum wage for a total of nine professions. Since it’s set by the government, there has been no debate over the methodology for calculating pay demands. However, the basic factor for calculating wage demands is the productivity of labour. Employer organisations believe that increases in real wages should go hand in hand with productivity increases. Cyprus’s Statistical Service calculates average productivity. Unions want more wage increases for low-paid workers across the board and seek a more equitable redistribution of the national product.
The minimum wage in Cyprus has not been decided upon by the government until recently. The Cyprus Labour Ministry is in favour of a national minimum wage because it would boost the market, protect 9% of the island’s workforce and stop unfair competition between employers. However, labour minister Zeta Emilianidou has repeated over that the national minimum wage will be introduced before the end of the Anastasiades administration. In her interview with journalists after the meeting of the Council of Ministers, Emilianidou declined to divulge the exact amount of the national minimum wage. However, she did mention that the minimum wage will be not lower than EUR 924.
It is 50th percentile wage
What does it mean to earn the 50th percentile wage in Cyprus? This is the median wage for an occupation and means that half of those working in that occupation are earning less than that amount. The next two percentiles, or the 25th and 75th percentiles, are calculated by dividing the median by the number of workers in the occupation. The pay gap between the private sector and public sector employees is 18 per cent, and economists have debated the reason for this.
In Cyprus, average annual salaries are low. More than seventy per cent of the population earns more than that, and the median salary is 2,500 EUR. As you can see, there are a lot of people earning more than that, but many of them are still struggling to make ends meet. Moreover, education is a key factor that has a high correlation to income. However, there are plenty of jobs with higher salaries than those at the median.
It is for vulnerable workers
The minimum wage in Cyprus is a statutory amount for certain professions. Other professions are not covered by the minimum wage. The state sets the minimum wage for the caretakers of nurseries and elderly homes. Private safety guards, clerks, and domestic workers work in private households. Migrants in Cyprus working as domestic workers are not covered by the minimum wage. The government has no plans to reform labour regulations in the near future.
Cypriot domestic workers are particularly vulnerable, given the peculiarity of their status and the employment law regime. This employment law regime is separate from that of workers in other sectors. Cyprus, for example, distributes a model contract of employment, which is problematic because it regulates a private law relationship and diverges from the general employment regulatory framework. However, this employment law is not discriminatory against migrant domestic workers.
It is not guaranteed
There is no general minimum wage in Cyprus, but a minimum of EUR 870 per month is paid for certain jobs. After six months of employment, this increases to EUR 924 per month. Cyprus is a small island country located in the Middle East with a population of 754,700. Its average life span is 76.7 years. Despite this, the minimum wage in Cyprus is not guaranteed. Here’s what you should know about Cyprus’ minimum wage.
In Cyprus, the Ministry of Labour is the authority responsible for implementing the relevant legislation. Law 109(I)/2014 on Minimum Guaranteed Income and Social Provision is a key component of the overall social welfare reform. It was a priority for President Nikos Anastasiades before his election and has remained committed to it ever since. Cyprus also asked the International Monetary Fund for financial assistance in 2013, which included an obligation to reform the social welfare system. Cyprus’ current economic situation makes reforming the system a high priority.
It increases for senior-level workers
Bonuses for senior employees in Cyprus can be significantly higher than those for lower-level employees. This is because of the seniority factor, which is a measurement of loyalty and value within an organization. The higher the seniority, the larger the bonus. The government of Cyprus provides a robust social safety net, including a Guaranteed Minimum Income scheme. While the budget provides enough support for the most vulnerable, the policies may need to be tweaked as clarity emerges.
Salaries are expected to increase in Cyprus by around 2-8% in 2022, mainly due to the changes in the country’s educational system and increasing pressure to provide quality healthcare. As the economy continues to expand, Cyprus’s salary rates are expected to increase, particularly for those working in industries such as healthcare, life sciences, and information technology. The national minimum wage will be more than twice that of its European counterpart, which will be equivalent to 707 EUR a month.