Nicosia, Cyprus. Cyprus recorded average hourly labour costs of €21.7 during the 2025 financial year, according to a report released on Tuesday by Eurostat. The figure was below the European Union average of €34.9 and the euro area average of €38.2.
Cyprus below EU and euro area averages
The data shows a continuing gap between Cyprus and higher-cost economies in Europe. Despite remaining among the lower-cost countries within the euro area, Cyprus reported higher hourly labour costs than Greece, which recorded €18.2 in 2025.
Year-on-year increase matches Spain and Luxembourg
Compared with the previous year, hourly labour costs in Cyprus increased by 3.5%. This matched the 3.5% increase recorded in Spain and Luxembourg. Across Europe, labour costs rose by 4.1% in the EU and 3.8% in the euro area.
Wide differences across the EU
Across the EU, the lowest hourly labour costs were recorded in Bulgaria at €12.0, Romania at €13.6, and Hungary at €15.2. Luxembourg recorded the highest hourly labour costs at €56.8.
How do Cyprus’s labour costs affect your view of the country’s competitiveness in Europe?