OEB highlights key labor issues in 2025

On the occasion of the Annual General Meeting of the Cyprus Employers & Industrialists Federation (OEB) scheduled for Tuesday, April 28, 2026, and addressed by the President of Cyprus, Mr. Nikos Christodoulides, OEB issued a communiqué.

The Federation actively supported businesses by submitting proposals to relevant ministries, emphasizing peaceful renewal of collective agreements, containing labor costs, and maintaining competitiveness.

In 2025, unemployment decreased to 4.4% from 4.9% in 2024, and employment exceeded 81%, up from 79.8% in 2024.

Key developments in 2025 include:

• In January, a 1.25% salary increase was paid based on the Automatic Indexation (ATA), linked to the Consumer Price Index, with a transitional agreement signed in 2017 and renewed in 2023.
• A permanent agreement on the ATA was signed on November 13, 2025, with phased increases in the Indexation Allowance from 66.7% to 100% by July 2027.
• The 2022 Strategy for the Employment of Foreign Workers was revised in February 2025, renamed the “Framework for the Employment of Foreign Workers,” to facilitate employment of foreigners from third countries.
• Pension reform discussions were initiated, based on ILO studies, aiming for a sustainable system that offers decent pensions without harming economic competitiveness.
• The Minimum Wage Decree increased the gross minimum wage to €979 from January 1, 2026, and to €1088 after six months of employment.
• OEB proposed legislating the Agreement on the Labor Dispute Resolution Procedure in Essential Services, following recent strikes affecting public services.

Throughout 2025, OEB engaged in legislative activities, European projects, and initiatives promoting gender equality and female entrepreneurship. These issues will be further discussed at the upcoming General Assembly on April 28, 2026, in Nicosia.

More details are available in the official report linked below.