Nicosia, Cyprus. Cyprus moved closer to adopting a long-delayed EU directive on adequate minimum wages as an updated draft law was presented to social partners, with key disagreements still unresolved.
Updated draft presented to social partners
The proposed Adequate Minimum Wages Law of 2025 was presented to representatives of employers and trade unions, following earlier meetings in January under the auspices of the director of the Department of Labour Relations, when employer organisations first voiced strong reservations.
At that stage, the Labour Ministry was seeking to align Cyprus with the EU directive on adequate minimum wages, as Cyprus remains among the few EU member states yet to formally adopt it, with the government targeting submission of the bill to parliament before the May elections.
Objectives and scope of the proposed law
The draft law aims to improve living and working conditions by ensuring that statutory minimum wages are sufficient to secure a decent standard of living, contribute to upward social convergence and reduce wage inequality.
The legislation sets out a framework covering the adequacy of statutory minimum wages, the promotion of collective bargaining as a wage-setting mechanism, and measures to strengthen effective access to minimum wage protection for employees.
Minimum Wage Adjustment Committee
The proposal includes the creation of a Minimum Wage Adjustment Committee, appointed by the Cabinet.
The committee would include three representatives of workers, three representatives of employers drawn from organisations participating as full members of the Labour Advisory Body, and three independent academics or recognised experts in labour matters, with one serving as chair.
The committee would prepare a recommendation report at least two months before any revision of the statutory minimum wage, taking into account economic and social indicators and providing justification for the weight assigned to each parameter.
Indicators considered in wage recommendations
The parameters include purchasing power and the cost of living, employment trends and unemployment rates, economic growth and productivity levels, and wage developments and their distribution.
The committee would also consider the potential impact of any adjustment on employment, poverty indicators, living costs and overall competitiveness, alongside other relevant macroeconomic developments.
What key issue do you think should be prioritised when assessing adjustments to the statutory minimum wage?