The Cabinet decided on Wednesday to start a social dialogue for introducing a national minimum wage in Cyprus when unemployment drops to around 5%.
Deputy Government Spokesman Panayiotis Sentonas said the Cabinet reaffirmed the government’s position to start a social dialogue for a national minimum wage when full employment conditions are reached.
He said the Ministry of Labour has completed all relevant studies on the issue.
They include the ways of introducing the national minimum wage and quantitative surveys of its effects on the labour market, social policy, but also on other aspects of the economy.
The studies also include evaluation mechanisms for regular adjustments of the minimum wage.
Sentonas said that as a consequence of the COVID-19 pandemic, employment conditions have deteriorated.
Before the pandemic unemployment was at 6%, which was very close to full employment conditions, today, based on the latest data unemployment has risen to 8% mainly due to the severe impact on the tourism sector.
“This new decision of the Cabinet, reaffirms its position on the national minimum wage when full employment conditions are achieved, meaning when unemployment is around 5%,” said Sentonas.