More than one in three salaried workers in Cyprus earns less than €1,500 a month, according to trade union federation PEO, which says it will seek a substantial increase in the minimum wage in 2027 to reflect the rising cost of living.
In a statement following an expanded meeting of its General Council on Monday, PEO said 188,697 employees receive less than €1,500 monthly.
The union said economic growth had not resulted in a fair distribution of wealth, while many workers faced growing pressure from high living costs, rising housing expenses and low wages.
It added that its priorities for the coming period include improving real wages, expanding rights secured through collective agreements and ensuring a fairer distribution of wealth.
174 collective agreements renewed
The General Council reviewed the results of negotiations to renew collective agreements that expired in late 2025 and early 2026, and set out its priorities for agreements due for renewal in 2027.
According to figures submitted by PEO’s member unions, 174 collective agreements covering 104,183 employees were renewed.
The agreements provide for average wage increases and improvements in other benefits exceeding 3%, in addition to the Cost of Living Allowance (CoLA).
Other improvements included reductions in weekly working hours under agreements providing for more than 38 hours, higher contributions to provident funds, and full financial compensation for parental and paternity leave.
PEO described the results as positive and in line with the negotiating policy set by the federation.
Higher wages and shorter working hours among priorities
For collective agreements due for renewal in 2027, PEO has identified several priorities.
These include substantial increases in basic wages, with particular emphasis on low-paid workers, and improvements to entry-level minimum wages.
The union is also seeking the universal introduction of a 38-hour working week without reductions in pay, stronger provident and welfare funds, and expanded coverage.
It wants full financial compensation for maternity, paternity, parental and carers’ leave, alongside stronger enforcement of collective agreements and measures to address violations.
PEO is also calling for the expansion and institutional protection of sectoral collective agreements, with agreed terms and minimum wages made binding.
Other demands include changes to the employment strategy for workers from third countries, linking work permits to compliance with collective agreements, more effective inspections and the protection and expansion of CoLA.
The General Council also discussed pension reform.
PEO calls for measures to tackle cost of living
The federation is seeking permanent measures to reduce the cost of living, including a lasting cut in VAT on electricity and the abolition of double taxation on fuel.
It also wants substantial increases in social benefits and the Guaranteed Minimum Income (GMI), as well as emergency support based on socio-economic criteria for pensioners, vulnerable households and low-paid workers facing heating costs.
PEO is additionally calling for the taxation of large fortunes and excess profits.
On housing, it wants a comprehensive policy that includes the development of social and affordable housing and a rent subsidy scheme based on socio-economic criteria.
The union also called for stronger support for the General Healthcare System (GeSY) and public hospitals, with improvements in the quality of healthcare and access to services.
Union demands hourly minimum wage calculation
PEO called on the government to implement its commitment to introduce an hourly calculation of the minimum wage without delay.
Discussions on setting the new minimum wage are due to begin in 2027. The federation said it would seek a substantial increase to ensure the rate reflects the rising cost of living and does not leave workers on what it described as a poverty wage.
It also called for specific government decisions and institutional measures to strengthen employment and social protection.
Economic growth, it said, should translate into better wages, decent working conditions and an improved quality of life for workers, rather than increased profitability alone.
Also read: 1,100 affordable rental homes planned for Cyprus over the next two years
For more videos and updates, check out our YouTube channel
