Cyprus Minimum Wage 2026: Two-Tier System Explained

Cyprus raised its statutory minimum wage for 2026. The new rates, effective 1 January 2026, are EUR 979 per month for employees in their first six months with an employer, and EUR 1,088 per month for employees with six or more months of continuous service with the same employer. The rates are fixed through 31 December 2027.

Current Minimum Wage Rates

The minimum wage in Cyprus applies on a gross monthly basis for full-time employees working standard hours:

• New employees (first 6 months with same employer): EUR 979 per month gross.
• Experienced employees (6+ months continuous service with same employer): EUR 1,088 per month gross.

Part-time employees receive the minimum wage on a pro-rata basis proportional to their contracted hours.

Who Is Covered

The statutory minimum wage applies universally to employees in Cyprus across all sectors. The rates are established by Council of Ministers decree and published in the Official Gazette. There are no sector-specific exclusions listed in the 2026 decree, making this a broad entitlement for all workers under employment contracts in Cyprus.

How the Two-Tier System Works

The two-tier structure is based on continuous service with the same employer. An employee who has worked for the same employer for six or more consecutive months is entitled to the higher rate of EUR 1,088.

If an employee changes employer, the six-month clock resets and the lower rate of EUR 979 applies until six months of continuous service with the new employer are completed.

Previous Rates for Reference

The minimum wage in Cyprus was introduced as a universal statutory rate in 2023. The rates increased progressively:

• January 2024: EUR 900 (new) / EUR 1,000 (experienced).
• January 2025: EUR 940 (new) / EUR 1,044 (experienced).
• January 2026: EUR 979 (new) / EUR 1,088 (experienced) - current rates.

Social Insurance and GESY on Minimum Wage

Employees earning the minimum wage are subject to the standard social insurance and GESY deductions. At the experienced rate of EUR 1,088 gross per month, the employee deductions are:

• Social insurance (8.8%): EUR 95.74 per month.
• GESY (2.65%): EUR 28.83 per month.
• Net minimum wage (experienced, approx.): EUR 963 per month.

Sources: Mercans Cyprus Statutory Alert 2026. Harris Kyriakides Law, New Statutory Minimum Wage in Cyprus 2026. Council of Ministers Official Gazette.