The Ministry of Labour is set to begin discussions next week to align with the European Union directive on adequate minimum wages.
The talks, aimed also at increasing the number of workers covered by collective agreements, will commence on Tuesday, September 10.
Social partners, including trade unions and employers’ organisations, will meet with the Head of the Labour Relations Department at the Ministry of Labour, with a follow-up meeting scheduled for September 17.
Cyprus, like all EU member states, has until November 15, 2024 to comply with Directive (EU) 2022/2041, which was adopted by the European Parliament and Council on October 19, 2022. The Ministry of Labour aims to implement the directive by the end of this year.
Sources close to the matter suggest that Cyprus may introduce new legislation or amend the existing Minimum Wage Law to align with the directive. Introducing new legislation and repealing the current law appears to be the most likely course of action.
The European directive does not mandate a uniform minimum wage across the EU but establishes a framework to ensure adequate minimum wages in each member state. It also encourages member states to promote collective bargaining, particularly where coverage is below 80%.
In Cyprus, approximately 50% of workers are currently covered by collective agreements, including those in the public and broader public sectors.
This figure suggests Cyprus may need to develop an action plan to boost collective bargaining, as advocated by the trade union movement.
Trade unions are also pushing for legal recognition of collective agreements, especially sectoral ones, as part of Cyprus’s alignment with the directive.
