Average wage purchasing power in Cyprus increased during 2023-2024, with nominal salary increases outpacing inflation, according to an annual report by the Cyprus Labour Institute (INEK-PEO) presented Tuesday in Nicosia.
The positive trend is attributed to low unemployment rates, the implementation of minimum wage legislation, and trade union interventions, said PEO General Secretary Sotiroula Charalambous. Real wages are now 11% higher than the 2006-2011 average.
However, the report authored by Elias Ioakimoglou notes that while wage increases have protected workers from further economic deterioration, they have not offset the income redistribution that has disadvantaged salaried workers since 2015.
Labour’s share of business sector output has declined by approximately six points between 2013-2024.
The study highlights concerns about job insecurity, with one in four workers classified as low-wage earners.
Capital profitability is 70% higher than 2010 levels, though only half of labor cost reductions translated into price competitiveness gains.
PEO called for expanding collective bargaining agreements to cover more workers and proposed making such agreements mandatory across sectors.
Charalambous also urged making collective agreements a criterion for public contract awards and work permits for third-country nationals.
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