Cyprus hourly labour costs rise 3.8% in second quarter of 2026

Nicosia, Cyprus. Cyprus recorded a 3.8 per cent annual increase in hourly labour costs in the second quarter of 2026, driven by higher wages and salaries and non-wage employment costs, according to Eurostat and the Cyprus Statistical Service.

The increase exceeded the 3.1 per cent rise recorded in the euro area and the 3.2 per cent increase across the European Union during the same period.

Wage and non-wage costs

Cystat said hourly wages and salaries rose by 3.9 per cent compared with the second quarter of 2025, while non-wage costs increased by 3.6 per cent.

The overall increase was faster than the 3.4 per cent annual rise in hourly labour costs recorded in the first quarter of 2026 and marginally above the 3.7 per cent increase reported in the second quarter of 2025.

Wage growth accelerated from 3.4 per cent in the first quarter, while the increase in non-wage costs rose from 3 per cent.

Labour cost indices

The unadjusted total labour cost index in Cyprus reached 121.87 in the second quarter, compared with 119.43 in the previous quarter and 117.38 a year earlier.

The wages and salaries index rose to 122.20, from 119.79 in the first quarter and 117.64 in the second quarter of 2025.

The non-wage costs index stood at 120.48, up from 117.92 in the first quarter and 116.33 a year earlier.

Cystat said the indices use 2020 as the reference year, set at 100.