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Cyprus, one of the last EU countries to adopt a minimum wage, has agreed to set a national minimum monthly wage at €940. The Minister of Labour and Social Insurance, Kyriakos Kousios, announced this on August 31st, 2022.

The implementation of the national minimum wage starts on January 1st, 2023, with a transition period to allow the economy and employers to cope with this change. While the minimum wage is set at €940, for the first six months of employment (probation period) it will be €885.

The introduction of the minimum wage will have, however, some exceptions for professions related to shipping, domestic workers and also farming. Worth noting; is that employees who receive more favourable treatment through a customary contract or other agreement are also excluded from the ruling. Where an employer provides food and/or boarding, it will be possible to deduct a percentage from the minimum wage; an amount of 15% for food and 10% for accommodation, always upon an agreement between the two parties. Lastly, employees that receive training for a degree or professional qualification are also excluded.

The move comes from continued pressure from the EU that is establishing guidelines for member states that cover minimum pay, equal pay and minimum wages for paternity, parental and career leave, as well as established several other rights.

For further information please contact our Director of Payroll & EOR services, George Georgiou at nicosia@eurofast.eu

Eurofast is a regional business advisory organization employing local advisors in over 22 cities in South East Europe & the Middle East (SEEME). The Organization is uniquely positioned as a one-stop-shop for investors and companies looking for professional services in Tax & Transfer Pricing – Payroll & Employment – Accounting & Audit –Advisory & Corporate. 
George Georgiou Eurofast

George Georgiou
Director of Payroll & EOR Services
Eurofast Nicosia
nicosia@eurofast.eu