Nicosia, Cyprus. The Employers and Industrialists Federation (Oev) outlined key labour developments for 2025 ahead of its annual general assembly on April 28. President Nikos Christodoulides is expected to address the event.
Annual general assembly
Oev said its annual general assembly will take place in Nicosia on April 28, in the presence of President Nikos Christodoulides, who is expected to speak at the event.
Federation actions and priorities
The federation said that during 2025 it undertook intensive action to support businesses and strengthen sustainability, submitting targeted proposals and recommendations to competent ministries. It said particular emphasis was placed on the peaceful renewal of collective agreements, alongside efforts to contain labour costs and safeguard the competitiveness of the Cypriot economy.
Unemployment and employment levels
Oev reported that unemployment declined further in 2025 to 4.4 per cent, compared with 4.9 per cent in 2024. It said employment exceeded 81 per cent, compared with 79.8 per cent in 2024, describing the 2025 figure as one of the highest levels recorded historically.
Wages and cost of living allowance
On wage developments, the federation said a salary increase of 1.25 per cent was granted in January 2025 on new basic wages through the cost of living allowance mechanism, where applicable. It said the adjustment was based on a transitional agreement reached between social partners on July 28, 2017, and its renewal signed on May 12, 2023.
According to Oev, the agreement provided for wage adjustments corresponding to 66.7 per cent of the annual increase in the Consumer Price Index, excluding taxes. The federation also said that following prolonged negotiations, a permanent agreement on the cost of living allowance was reached and signed on November 13, 2025, in the presence of the president.
What impact do you think the permanent cost of living allowance agreement could have on wages and labour costs?
