The Cyprus Employers & Industrialists Federation (OEB) and the Cyprus Chamber of Commerce & Industry (CCCI) have rejected the draft agreement on the Cost-of-Living Adjustment (COLA) after a joint meeting on 5/11/2025.
The Executive Committees of the Cyprus Employers & Industrialists Federation (OEB) and the Cyprus Chamber of Commerce & Industry (CCCI) convened on 5/11/2025 in a joint session to review the draft “for a permanent agreement on the COLA” submitted by the government.
After an extensive dialogue and exchange of views, both organizations found the draft unsatisfactory in its key provisions and cannot accept or sign it as it stands.
Both organizations expressed their desire to reach a permanent agreement on COLA, emphasizing the need for 100% coverage of low wages for those entitled to COLA. They also highlighted the importance of including specific conditions and safeguards to modernize the system, ensure business competitiveness, and maintain the sustainability of the state payroll.
The draft includes provisions related to the National Minimum Wage that are not connected to the transitional agreements of 2017 and 2023. As formulated, these provisions are unacceptable despite the employer side’s stated principle of including COLA within the minimum wage determined every two years under the current decree.
A key factor influencing the organizations’ final decision was the last-minute inclusion by the Welfare Government, which called on employers to authorize the Ministers of Finance and Labor to implement measures to extend COLA to more beneficiaries.
OEB and CCCI remain committed to ongoing negotiations to find a mutually acceptable agreement.
