As the employment regulatory landscape evolves in Cyprus, knowing and understanding the developments in wage legislation is essential for businesses that aim to stay compliant, attract talent, and maintain a positive corporate reputation. One of the most significant milestones has been the introduction of a national minimum wage, coupled with legislative reforms affecting employment contracts, working conditions, and remote work arrangements.
This article provides an overview of the current minimum wage framework and wage protection measures, offering employers practical guidance to align their operations with the law and build a responsible employment model.
National Minimum Wage: A Clear, Predictable Framework
Cyprus introduced a national minimum wage for the first time on 1 January 2023, aiming to provide a basic level of protection for employees and reduce wage inequality. The implementation followed extensive consultations with social partners and aligns with broader EU recommendations. The national minimum wage was revised after one year of its introduction and as of 1 January 2024, according to the Ministerial Decree (the “Decree”) the minimum wage stands at:
- €1,000/month for full-time employees
- €900/month for new hires during their first six months of employment
The provisions of the Decree do not apply to domestic workers, the workers in agricultural and animal farming workers and seamen, as well as to workers to whom the Minimum Wages in the Hotel Industry Order of 2020 applies.
Importantly, the minimum wage is reviewed every two years by a dedicated consultative body comprising government, employer, and employee representatives. The next scheduled review is due by the end of 2025, and a revised minimum wage is expected to apply as of 1 January 2026, subject to socioeconomic indicators and consensus among stakeholders.
Additional Flexibility for Employers
According to the Decree, Employers offering in-kind benefits such as food and housing can deduct:
- Up to 15% for meals and/or
- Up to 10% for accommodation
This deduction is permissible only when there is a mutual agreement between the employer and the employee. Furthermore, employees retain the right to terminate this agreement by providing a 45-day written notice to their employer.
Sector-Specific Provisions
Some industries continue to operate under sector-specific wage frameworks. For example, the hotel sector is regulated by the Hotel Industry Minimum Wage Decree (K.D.P. 55/2025), which defines minimum wages based on job category.
These rates are based on 38 working hours per week over a 5-day period and vary by role. Employers operating in the hospitality sector are encouraged to review the applicable order to ensure compliance with role-specific wage standards.
Wage Protection: Enhancing Trust and Compliance
Cyprus has taken decisive steps to enhance transparency and protection in employment relationships, aligning with EU standards. Two laws are particularly relevant:
- Law on the Protection of Wages L.35(I)/2007: Addresses the protection of wages, including payment methods, frequency, deductions and legal remedies available to employees in case of non-payment.
- Law on Transparent and Predictable Working Conditions L.25(I)/2023: Transposes EU Directive 2019/1152 on transparent and predictable working conditions, requiring employers to clearly outline, in writing terms, of employment from day one, including wage, job title, hours, location, and conditions of termination.
Together, these laws reduce ambiguity and help employers prevent disputes, foster trust, and create clear internal HR procedures.
Digital Compliance: ERGANI Platform
To support enforcement and ensure transparency, the Ministry of Labour and Social Insurance has implemented the “ERGANI” electronic platform. As of 2025, all employers must declare the essential terms of employment for each employee through the platform, include his/her wage. This measure aims to create a transparent employment record and support efficient HR and payroll management.
Why Compliance Makes Business Sense
- Reduce Legal Risk: Clear contracts and lawful remuneration structures protect your business from fines and litigation.
- Build Employee Trust: Transparent wage policies contribute to stronger retention and morale.
- Enhance Your Brand: Demonstrating fair employment practices strengthens your company’s public image and employer brand.
- Attract Global Talent: Clear, compliant wage structures support recruitment of skilled local and international professionals.
Conclusion
As Cyprus continues to modernise its labour framework, the national minimum wage, enhanced wage protection laws, and digital compliance platforms signal a shift toward greater transparency, fairness, and accountability in the employment landscape. For employers, these changes are not merely regulatory hurdles—they are strategic opportunities.
By proactively aligning with current legislation, businesses not only reduce legal and reputational risk but also position themselves as responsible, attractive employers in a competitive talent market.
How We Can Help
Navigating evolving employment legislation can be complex. Our team provides tailored support to help you:
- Review and update employment contracts in line with current legislation
- Structure compliant wage and benefit policies
- Implement clear HR procedures and documentation
- Conduct compliance audits to reduce legal risk
Whether you’re an SME or a multinational operating in Cyprus, we offer practical, commercially focused legal solutions to support your workforce strategy.
📩 Get in touch to discuss your compliance needs and ensure your business is future-proof.
This article is for general informational purposes only and does not constitute legal or professional advice.
