From January 1, 2023, the institution of the National Minimum Wage will be applied for the first time in Cyprus, after the relevant decree of the Minister of Labor and Social Insurance, Kyriakos Kousios, comes into force.
The National Minimum Wage is set at 940 euros. For the first six months of employment it will be 885 euros, while at the beginning there will be a transitional period.
40,000 low-wage workers essentially benefit from the establishment of the National Minimum Wage, but those who work in agriculture, domestic workers and those who work in shipping are excluded. Also exempt are persons who receive training or education to obtain a degree or professional qualification.
Also exempt from the Ordinance are those who receive more favorable treatment through contract, custom, practice or other Ordinance. If an employee has better benefits than those provided by the Ordinance in no way the better benefits are not affected.
Besides, when the employer offers food and accommodation, 15% for food and 10% for accommodation can be deducted from the amount in money by agreement between the parties. This is permissible only in the case of an agreement between employer and employee. The latter can, with 45 days notice to the employer, get rid of this part of the agreement.
In addition, for seasonal workers up to the age of 18, with seasonal work set at a maximum of two months, 25% of the National Minimum Wage may be withheld.
The first adjustment of the National Minimum Wage will take place on 1.1.2024 and from then on every two years, after the establishment of a nine-member committee, which will be made up of 3 representatives of the trade union movement, 3 representatives of employers and 3 academics or experts on labor matters, who will advise the Labor Advisory Body, which in turn advises the Minister of Labour, who will submit a reasoned report to the Cabinet on the adjustment of the National Minimum Wage.
The criteria for adjustment will take into account the purchasing power of the National Minimum Wage, trends in employment levels and unemployment rates, variation in economic growth and productivity levels, variation and trends in earnings levels and their distribution, effects that any change in the minimum wage will have on employment levels, the relevant indicators and absolute poverty, the cost of living and the competitiveness of the economy.
The Department of Labor Relations is charged with the control and faithful implementation of the Decree.
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