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Cabinet sets National Minimum Wage at €940

31/08/2022 15:04

The Cabinet decided on Wednesday to set the National Minimum Wage at €940, as Minister of Labour and Social Insurance, Kyriacos Koushos announced, pointing out that it was a "historic day" for the welfare state.

According to the decision the National Minimum Wage is set at €940, while for the first six months of the employment it is set at €885.

The implementation of the National Minimum Wage starts from the first day of 2023, however according to Koushos there will be a transition period to allow the economy and employers to adapt to this change.

In his statements, Koushos said that 40 thousand low income citizens will substantially benefit from this development. “The wage increase in some cases may even reach 30%, while another 60 thousand citizens are being positively affected to a smaller extent,” he added.

Koushos noted that this is historic day for the Labour Ministry, labour relations, the welfare state, the social state envisioned by Cyprus President, Nicos Anastasiades.

“I believe that we managed to converge to a great extent the various positions and to form, though productive dialogue, a Decree on the basis of which the Lowest Minimum Wage is determined at 940 euros,” he added.

Koushos noted that the introduction of the minimum wage will naturally have some exceptions. These include professions related to shipping, domestic workers and also farming and livestock.

He clarified that "those who receive more favourable treatment through a customary contract or other decree are also excluded from the decree." That is to say, he noted, "if an employer has better benefits than those provided for in the decree in no way are these benefits affected."

Persons receiving training for a degree or professional qualification are also excluded. Where an employer provides food or accommodation, it will be possible by an agreement between the parties to deduct from the cash amount 15% for food and 10% for accommodation. The employee will be able with 45 days' notice to waive this part of the agreement.

"I must say that there were significant differences between the employers' side and the trade unions. Nevertheless, through discussions, we were able to reach a point of agreement. I thank them for their cooperation and the way they conducted the consultation," he said.

Responding to questions, the Labour Minister said that the first adjustment of the Lowest Minimum Wage will take place on 1.1.2024 and from there on every two years on the basis of concrete criteria.

Koushos also stressed that the Labour Ministry and himself will not allow any diversion from the provisions of the Decree.