Nicosia, Cyprus. Cyprus recorded one of the lowest increases in hourly wage costs in the European Union in the fourth quarter of 2025, according to Eurostat. The data showed hourly labour costs rose by 3.3% in the euro area and 3.7% in the EU compared with a year earlier.
Cyprus and EU comparisons
Across the EU, Cyprus recorded a wage cost increase of 2.7%, placing it among the lowest-performing member states alongside Germany. Only France (1.1%), Italy (2.3%), Denmark (2.5%) and Finland (2.6%) recorded weaker growth, while Malta posted a decline of 3.9%.
Highest increases
Slovenia recorded the highest increase at 19.1%, followed by Bulgaria at 13.8% and Croatia at 10.5%.
Wage and non-wage components
Eurostat said labour costs are made up of wages and salaries and non-wage components, both of which contributed to the overall increase. In the euro area, wages and salaries rose by 3.0% and the non-wage component increased by 4.4%. Across the EU, wages and salaries increased by 3.4% and non-wage costs rose by 4.5%.
Sector developments
The report said labour costs increased across all major sectors of the economy. In the euro area, hourly labour costs rose by 3.5% in the non-business economy and by 3.2% in the business economy.
How do changes in wage and non-wage labour costs affect your household budget?