Minimum Wage in Cyprus 2026: How Much It Is, Who Is Covered and What Changes Next

The national minimum wage in Cyprus is €979 gross a month for a full-time employee in their first six months with the same employer, and €1,088 gross a month after that (as of 1 January 2026). Here we explain who the decree covers, what it means in your bank account, and what to do if you are paid less.

How much is the minimum wage in Cyprus in 2026?

The Council of Ministers raised the national minimum wage from 1 January 2026. It is a two-step rate that depends on how long you have worked for the same employer.

The Labour Minister said around 50,000 workers would benefit. The new levels apply until 31 December 2027, so you should not expect another change in 2027. The step up after six months is automatic: your employer does not need to be asked, and if your payslip still shows the starting rate after that date, raise it.

These are gross monthly figures for full-time work. Part-time employees are entitled to the same rate in proportion to the hours of a full-time job in their occupation. Full-time hours are not set by the decree itself, so check the hours in your contract, collective agreement or sector rules.

Is there an hourly minimum wage?

Not as one national figure. The 2026 amounts are monthly, and the minister has said that an hourly minimum was not ready in time and would be discussed by the technical committee. There is no official hourly rate yet, so do not trust websites that divide €1,088 by an assumed number of hours and call it the legal rate.

Who is covered, and who is not?

The decree covers almost all employees, but not everyone. As described by Eurofound and by Cyprus law firms, the following are outside the general decree:

• Households as employersWhich means domestic workers such as live-in carers and cleaners.
• Agriculture and farm work.
• Maritime activitiesIncluding seafarers.
• Trainees and people in vocational education.
• Hotels and accommodationWhich have their own decree (K.D.P. 55/2025) with separate rates for 13 professions.

Eurofound also notes, from the earlier version of the decree, a lower rate for under-18s on short casual work, and that employers can count meals or housing towards the minimum within set limits. Those details may differ in the 2026 text, so read the decree on the Department of Labour Relations site before relying on them.

Two practical points for expats. First, the minimum applies whatever your nationality or permit type, so a non-EU worker on a work permit has the same minimum as a Cypriot colleague. Second, being outside the decree does not mean having no protection: your contract, collective agreement or a sector decree still applies. Our guide to work permits for non-EU citizens explains the permit side.

What if a collective agreement pays more?

Better terms are always allowed. The decree sets a floor, and a collective agreement or individual contract can set a higher figure. Roughly 40% of employees are covered by collective agreements, according to a September 2026 Cyprus Mail report, so check yours.

How does it work with COLA, the 13th salary and overtime?

COLA. Cost-of-living allowance (COLA) is the automatic adjustment to some salaries for inflation. The government said it counted COLA at about 2% when it set the 2026 increase, and the minister described COLA as a separate component rather than the increase itself. In practice you should not expect COLA to be added on top of the new minimum. If your contract or collective agreement gives COLA, check how your payslip shows it.

13th salary. A 13th salary is common in Cyprus but is normally a matter of your contract or collective agreement. Whether it counts towards the minimum is a question for the Department of Labour Relations, so ask them if you are close to the threshold.

Overtime and holiday pay. Eurofound describes the minimum as the total gross monthly pay for ordinary full-time work, with overtime and public-holiday pay not counted towards it. If you earn the minimum only because of overtime, that is worth a question.

What is the take-home pay on €1,088 a month?

Here is our own estimate, using the employee rates for 2026: social insurance 8.8% and GESY (the national health system) 2.65%. Income tax is nil because the first €22,000 a year is tax-free from 2026, and even €1,088 × 13 months comes to just €14,144 a year.

This is an estimate: it ignores union fees, provident fund contributions, any payroll differences and your personal situation. Employer contributions are paid on top and do not come out of your pay. Our guide to the 2026 tax reform has the full bands, and the Tax Department guide is the official source.

What should you do if you are paid less than the minimum?

The route is the Department of Labour Relations (DLR) of the Ministry of Labour and Social Insurance, whose inspectors check compliance with pay rules. WageIndicator's older description of the rules says that after an employer is convicted, you can claim the difference for up to two years back, though we recommend not waiting.

Steps

1. Check you are covered. Compare your job against the exclusions above and look at your length of service with the same employer.
2. Gather evidence. Collect your contract, payslips, bank statements and any messages about hours and pay.
3. Ask your employer in writing. A short, calm email often resolves honest payroll errors, such as a missed switch to the €1,088 rate.
4. Complain to the DLR. Use the DLR complaint form and read the DLR frequently asked questions. The separate Department of Labour Inspection also has a minimum wage page; its main work is health, safety and working conditions.
5. Keep working records. A complaint does not remove your right to be paid and treated fairly. If your job is at risk, see our guide to notice and redundancy rights.

What changes next for the minimum wage?

• To 31 December 2027: the €979 and €1,088 rates stay in force.
• Second revision: in November 2025 the labour minister said it is planned for December 2027, effective January 2028. No figure has been given, so ignore anyone quoting one.
• Hourly minimum: it remains under discussion in the technical committee, and the minister said changes to how hourly pay is calculated could come in the next decree.
• EU directive: in September 2026 the minister said a minimum wage bill, aligning Cyprus with EU Directive 2022/2041 on adequate minimum wages, should go to parliament by the end of 2026. Cyprus Mail reported that the bill is still being reviewed by the Legal Service, and the contents have not been published.

Our checks of Cyprus Mail, Politis and FastForward found no confirmed 2027 rate, so the 2026 figures above are the ones that count.

What to do next

• Check your latest payslip: the rate, the date you started, and whether the step to €1,088 happened after month six.
• Read how to find work in Cyprus if you are comparing offers.
• See notice periods, redundancy pay and your rights before changing jobs.
• Budget realistically with our cost of living in Cyprus 2026 guide, because €963 net goes a short way on rent in Limassol or Paphos.
• If you are underpaid, gather the evidence and use the DLR complaint form linked above.