One in ten workers to benefit from minimum wage

The introduction of a national minimum wage will make lives better for 9% of the island’s workforce, as it will function as a shield for employees against exploitation, said Labour Minister Zeta Emilianidou.

Addressing members of the Cyprus Chamber of Commerce and Industry (CCCI), Emilianidou said a national minimum wage would prove to be beneficial for the market, clamping down on unfair competition from employers who resort to exploitation.

The Labour Minister has on more than one occasion appeared adamant over introducing a national minimum wage before the end of President Nicos Anastasiades’ administration.

According to reports, the minister refrained from disclosing the amount of the national minimum wage, sufficing to tell her interlocutors that it will not be lower than EUR 924, which is the minimum compensation set for some professions. Emilianidou said the minimum wage would be introduced by the end of the year.

When asked by the members of the CCCI whether the government would take into account the fallout from the ongoing war in Ukraine, Emilianidou reassured the business community that authorities are aware of the challenges.

Emilianidou said the government does not wish to see businesses falling on hard times following the coronavirus pandemic, reminding of the financial support given during lockdowns and restrictions.

But the government is not willing to accept people working a fulltime job for a EUR 500 or EUR 600 per month.

She noted that setting a minimum for all occupations would help low-income retirees in the medium and long term to receive better and more decent pensions.

Asked which sectors will be most affected by the introduction of the national minimum wage, Emilianidou referred to a survey showing employees in the retail sector take home wages under the poverty line.

The government plans to introduce a minimum wage that will gradually reach 60% of the mean wage.

The mean (net) wage in Cyprus, according to official data, was 1,573 in 2020. Currently, a monthly minimum wage applies to nine professions at EUR 870 and rises to EUR 924 after six months of continuous employment.