CYPRUS: After years of salary cuts pay has risen to highest level since 2013

Wages in Cyprus are back on an upward trend after years of austerity and pay cuts in the wake of the 2013 financial crisis, according to data released by CyStat.

According to preliminary data, the average gross monthly salary of employees in the second quarter of 2018 is estimated at €1,827, increasing by 1.4% compared to €1,801 in the same quarter of 2017.

Average gross earnings, adjusted for seasonal fluctuations, in April-June 2018 are estimated at €1,912 compared to €1,906 in January-March 2018. This is the highest level since the fourth quarter of 2013.

The increase in wages resulted from a 50% reintroduction of the inflation adjusted cost of living allowance – enjoyed by public sector workers – and the cutback on the extraordinary contributions of the employees.

The average monthly salary of employees includes basic salary, indexation allowance, overtime pay, holiday fund, any allowances received by employees during the reference period, as well as back payments.

The average monthly earnings are calculated by dividing all gross earnings before deducting any contributions to statutory social security funds with all the employees who received that remuneration.