The cabinet on Wednesday approved a package of measures to improve wages, boost employment and regulate foreign workers in the labour market.
The changes are expected to particularly affect foreign workers, who fill a significant percentage of staffing needs across various economic sectors.
Hotel industry to see minimum wage increase of 3.54 per cent from January 2025 for 19 job categories, building on the 7.12 per cent rise implemented in June 2023. The combined increases over the two-year period total 10.66 per cent, benefiting thousands of workers, both Cypriot and foreign.
The government aims to reduce unemployment below 5 per cent and increase employment above 80 per cent in 2025, Labour Minister Yiannis Panayiotou said. Vocational training programmes will be implemented alongside continued monitoring of undeclared and underdeclared work.
In response to increased demand for staff, the cabinet approved a new “Framework for Employment of Foreign Workers” regulating third-country nationals’ employment.
Key modifications include:
- Creation of a Tripartite Advisory Committee to monitor procedures
- Updated quotas for professions facing domestic labour shortages
- Allowing foreign workers mobility within the same company
- Improved living conditions, with maximum housing deductions increased from 10 to 25 per cent where specific criteria are met
- Mandatory vocational training in certain sectors
- Introduction of a mechanism to revoke foreign employment approvals if negative impacts on the local labour market occur
A new digital platform for foreign worker employment applications will launch in March, streamlining the process. The framework also enhances foreign students’ access to the labour market and promotes attracting highly skilled workers through the European Union Blue Card scheme.
Read more:
