The President of the Republic of Cyprus, Nikos Christodoulides, outlined the government’s policies for workers in a written statement issued on the occasion of International Workers’ Day. The message focused on the increase in the minimum wage, measures to boost disposable income through tax reform, the cost-of-living allowance and pension adjustments.
Below is the full statement by President Christodoulides.
International Workers’ Day is a day of tribute and recognition of the long-standing struggles of workers for dignified working conditions and safety in the workplace. These are conditions that should reflect their contribution and ensure that economic progress and growth translate into security, prospects and genuine social well-being for all.
Based on this approach and on the principles of Social Liberalism that form the ideological and political framework of our government, from the very first day of assuming office we proceeded with the following measures:
- Increasing the minimum wage from 940 euros in 2023, after the first six months of employment, to 1,088 euros in 2026, representing an increase of 13.6 percent.
- Increasing the disposable income of approximately 200,000 workers through the tax reform introduced by the government, which entered into force on 1 January 2026. This reform resulted in a tangible increase in workers’ take-home pay from the very first month of its implementation, while also raising the tax-free income threshold from 19,500 euros to 22,000 euros.
- Increasing the cost-of-living allowance (CoLA), initially from 50 percent to 66.7 percent, and subsequently reaching a significant agreement in November 2025 that provides for the gradual restoration of the allowance to 100 percent within 18 months.
- Implementing a cumulative increase of around 10 percent between 2023 and 2025 in the basic component of pensions, including the basic and minimum pensions of the Social Insurance Fund as well as the social pension.
At the same time, due to the government’s responsible fiscal policy and strong economic growth, recent data from the Statistical Service show that median gross monthly earnings increased consecutively in 2024 and 2025 by 5 percent and 4.6 percent respectively.
Our efforts continue with the reform of the pension system, aiming not only at the long-term sustainability of the system but also at strengthening pension adequacy, particularly for low-income pensioners, while ensuring fairness between generations.
At the same time, within the framework of Cyprus holding the Presidency of the Council of the European Union, a provisional agreement was reached in recent days between the Council and the European Parliament on the proposed revision of Regulation 883 concerning the coordination of social security systems at EU level, following ten years of stagnation.
This development has a strong social impact and substantially strengthens the rights of workers who move within the European Union. Among other things, it ensures greater legal clarity and improves the effective application of the rules so that no worker faces bureaucratic obstacles.
Our government remains fully committed to supporting workers and pensioners by adopting policies that strengthen social cohesion and ensure a stable and reliable system of social protection that meets the expectations of Cypriot society.
We are able to implement these policies thanks to our prudent fiscal policy, which allows for meaningful social interventions, far removed from populist approaches and empty promises.
Happy Labour Day.