Nicosia, Cyprus. Hourly labour costs in Cyprus rose in the final months of 2025, according to official preliminary figures, adding pressure to the country’s inflation outlook. The Cyprus Statistical Service reported increases across wages and non-wage labour cost components.
Year-on-year increase in hourly labour costs
The Cyprus Statistical Service, using preliminary data, recorded an annual increase of 2.7% in hourly labour costs in the fourth quarter of 2025 compared with the same quarter of the previous year.
The increase reflected changes in both wages and salaries per hour worked and non-wage labour costs per hour worked. Wages and salaries per hour worked increased by 2.7% year-on-year, while non-wage labour costs per hour worked rose by 2.9%.
Quarterly movement in seasonally adjusted figures
Seasonally adjusted total hourly labour costs increased by 0.7% compared with the previous quarter. Seasonally adjusted wages and salaries per hour worked also rose by 0.7% on a quarterly basis.
Seasonally adjusted non-wage labour costs per hour worked increased by 0.7% compared with the preceding quarter.
Labour market and employment cost adjustments
The figures indicate a moderate upward trend in labour costs, reflecting broader labour market developments and ongoing adjustments in employment costs across the Cypriot economy.
How do you think rising labour costs could affect prices and wages in Cyprus?