Reactions to Cyprus Minimum Wage Decision: Workers Cry 'Setback'

Announcements regarding the minimum wage in Cyprus have sparked strong reactions. The trade unions SEK, PEO, and DEOK issued a joint statement, calling the Ministerial Council's decision a 'setback' and 'below expectations'.

According to the unions, the €67 increase after 6 months of service falls short of the EU guidelines for the minimum wage, which defines the ratio of minimum wage to median wage at 60%. They point out that the minimum starting wage of €979 (including ATA) is only 52% of the median wage for 2024.

The unions emphasize that the government's decision does not contribute to reducing income inequalities but perpetuates them. They also express dissatisfaction that the government has not proceeded with the hourly rate of the minimum wage.

On the employers' side, KEBE notes that the increase is higher than expected but respects the Minister's decision. OEB, on the other hand, expresses concerns about the macroeconomic impact of the increase, arguing that it will cause inflationary pressures and affect the competitiveness of the economy.

Source: CNA