National minimum wage increased for 2023

IMPACT — MEDIUM

The government of Cyprus announced that it will increase its national minimum wage in January 2023.

Key Points:

• Cyprus’ monthly national minimum wage will increase by €16, from €924 to €940.
• The new minimum wage will take effect Jan. 1, 2023.
• The monthly minimum wage will be €885 for an individual’s first six months of employment and increased to €940 if the employee stays at the company.
• Benefits cannot be included when calculating minimum salary requirements.

Additional Information: The minimum wage is relevant to all workers in Cyprus, whose wages cannot be lower than the minimum wage. Foreign workers must be paid above the minimum wage.

BAL Analysis: Businesses may see a slight increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account when planning their 2023 budgets.

This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.

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