A new era in the labour market: Transparency, equality and investment in skills

Economy Top Newsworkers' rights A new era in the labour market: Transparency, equality and investment in skills Outdoor Work Halted At Midday As Heat Warning Stays Orange Relevant News A new era in the labour market: Transparency, equality and investment in skills 22 August 2026 Turkey issues arrest warrant for Netanyahu over Gaza flotilla raid 21 August 2026 Overnight pharmacies, Friday August 21, 2026 21 August 2026 Evagoras Procopiou 22 August 2026 FacebookXWhatsAppEmailPrintViber The Cypriot labour market is entering a period of substantial change, as new legislative obligations, stronger inspections, pay transparency, gender equality and the need for continuous skills upgrading create a more demanding environment for businesses and employees. These changes were the focus of a labour affairs conference organised for the third consecutive year by the Institute of Certified Public Accountants of Cyprus (ICPAC), in cooperation with the Ministry of Labour and Social Insurance and the Human Resource Development Authority. The conference was recently held at the Cyprus Productivity Centre in Nicosia. The agenda covered pay transparency, equal pay for men and women, the protection of wages, transparent and predictable working conditions, teleworking, undeclared employment, grant schemes for unemployed people and vulnerable groups, as well as training and professional qualifications certification programmes. It also highlighted female entrepreneurship, the reconciliation of professional and family life and the need to create working environments that protect human dignity. In his address, Minister of Labour and Social Insurance Marinos Mousiouttas said certified public accountants represented the first line of compliance for thousands of Cypriot businesses, as they were often the professionals to whom employers turned in order to understand and implement their obligations. He said the discussion was taking place at a time when the Cypriot labour market was recording positive indicators. Unemployment fell to 4.3% in March 2026, compared with 6.2% in the euro area, while employment has exceeded the 80% target set for 2030. The new national minimum wage of €1,088 has also been in force since 1 January 2026. ICPAC General Manager Andreas Papadatos stressed the importance of information, dialogue and cooperation in addressing the challenges of the modern labour market. He noted that information and the exchange of views on labour developments strengthen knowledge, responsibility and sustainable development within organisations and society. Lena Panayiotou, Assistant Director General of the Cyprus Employers and Industrialists Federation (OEB), said continuous changes made timely information an essential tool for businesses. She referred to the reform of the pension system, the forthcoming legislation on pay transparency and the preparation of an action plan to promote collective bargaining. She stressed that OEB supported equal pay for work of equal value, while also underlining that the new obligations should be practical and enforceable, particularly for small and medium-sized enterprises. Inspections and undeclared work Antis Apostolou, Head of the Inspection Service, Director of the Department of Labour Relations and Registrar of Trade Unions, presented the work of the Inspection Service. The Service is responsible for monitoring compliance with 30 different laws, carries out systematic and targeted inspections and investigates complaints and reports. Obstructing an inspector in the performance of their duties may result in imprisonment for up to two years, a fine of up to €5,500, or both penalties. Administrative fines of €250 or €500 are imposed for breaches of labour legislation for each employee affected. In cases of undeclared work, the fine amounts to €1,000 for each employee for the first month of the infringement and increases by €500 for each preceding month. According to figures presented by Antis Apostolou, 7,920 inspections covering 18,366 employees were carried out in 2025. A total of 1,009 undeclared workers and 1,095 illegally employed workers were identified, while administrative fines for undeclared work amounted to €1,945,000. Protection of wages and teleworking Xenios Mamas, Senior Labour Relations Officer, presented the legislation on the protection of wages, transparent and predictable employment conditions and teleworking. He said teleworking was generally voluntary and agreed between the employer and employee. Teleworkers have the same rights as those employed at the business premises, while the right to disconnect from electronic means after the end of working hours is guaranteed. The employer bears the cost of teleworking and provides technical support, and informs the employee in writing of its terms. With regard to the protection of wages, every employer is required to issue a monthly or weekly payslip and deliver it within five working days of payment. Deductions not provided for by law or a collective agreement are permitted only with the employee’s written and signed consent. Gender Equality Commissioner Josie Christodoulou referred to the discrimination women continue to face, such as lower pay for work of equal value, limited opportunities for advancement and exclusion from leadership positions. She cited a 2023 McKinsey study, according to which organisations with greater gender balance in executive positions were 39% more likely to outperform businesses with less equal representation in terms of profitability. The human dimension was addressed by Konstantina Achilleos, ICPAC Communications Officer and President of the Cyprus Youth Organisation. She referred to the difficulties faced by working parents, particularly women who combine professional obligations, childcare and financial pressures, stressing the need for businesses to invest in quality of life and work-family balance. New rules on pay transparency One of the most significant changes concerns the transposition into Cypriot law of European Directive 2023/970 on strengthening the application of the principle of equal pay for men and women for equal work or work of equal value. The key provisions were presented by Panayiota Arnou, Labour Relations Officer at the Department of Labour Relations. As Panayiota Arnou explained, the principle of equal pay has been included in European law since the 1957 Treaty of Rome. Relevant legislation was enacted in Cyprus in 1989, followed by the Equal Pay Law of 2002. Despite the existing framework, the European Commission found that the application of the principle of equal pay for men and women for equal work or work of equal value remained inadequate, mainly because of a lack of transparency in pay systems, ambiguity surrounding work of equal value and employees’ limited access to comparable data. The Directive introduces obligations for all public- and private-sector employers. Businesses will be required to have pay structures and gender-neutral job evaluation and classification systems. The criteria used to determine pay and pay progression must be objective and accessible to employees. Job applicants must be informed of the initial pay or pay range before the interview, while questions about their salary history will not be permitted. Job vacancy notices and job titles must be gender-neutral. Employers will not be able to prevent employees from disclosing their pay for the purposes of enforcing the principle of equality. Every employee will be entitled to request in writing information on their individual pay level and on average pay levels, broken down by gender, for categories of employees performing equal work or work of equal value. The concept of pay is not limited to basic salary. It includes bonuses, overtime pay, travel allowances, housing and food allowances, payments for training, sick leave and occupational pensions. Businesses with at least 250 employees will report data on the pay gap annually from June 2027. Employers with between 150 and 249 employees will report every three years from 2027, while those employing between 100 and 149 people will report every three years from 2031. If a difference of at least 5% is identified in a category of employees, which is not justified by objective, gender-neutral criteria and is not remedied within six months, a joint pay assessment will be required. The eValueJobs tool has been developed to support employers, while guides for the creation of pay structures, document templates and an electronic system for submitting the indicators will also be developed. Women in employment: High educational attainment, low representation in positions of power Significant inequalities continue to be recorded in Cyprus regarding women’s participation in positions of power, leadership and decision-making, despite the positive picture in employment and education and the progress made in reducing the pay gap. The figures were presented by Niki Christofi, a member of ICPAC’s Corporate Social Responsibility Committee. She said Cyprus’s low performance in the Gender Equality Index was mainly linked to women’s limited presence in leadership positions and the disproportionately greater amount of time they devoted to caring for the home and children. According to Statistical Service data for 2025, women accounted for 19,399, or 39.2%, of the 49,493 self-employed people. Among employees, women numbered 217,688 out of a total of 455,151 workers, or 47.83%. The disparity widens in managerial positions. Among self-employed managers and administrative officers, women account for just 2.65%, numbering 22 out of a total of 829 people. Among employees in the same category, women number 5,776 out of a total of 21,586, or 26.76%. By contrast, in the categories of professionals and other specialists, women’s participation reaches 55.59% among the self-employed and 51.59% among employees. The figures highlight the gap between possessing qualifications and gaining access to management positions. Women are overrepresented in sectors associated with education and care. A total of 27,888 women work in education, compared with 9,014 men. In human health and social work activities, 20,118 women and 8,917 men are employed. The Information and Communication Technologies (ICT) sector remains male-dominated. According to 2025 data from Eurostat, the statistical office of the European Union, men account for 79.9% of ICT specialists in Cyprus and women for 20.1%. In the EU, the corresponding percentages are 80.5% and 19.5%, respectively. An even wider disparity is recorded in positions of political and economic power. According to the 2025 Gender Equality Index, women account for 16.7% of ministers and deputy ministers in Cyprus, compared with 35.1% in the EU. In parliament, their share is limited to 14.3%, compared with 33.4% in the EU. On the boards of the largest listed companies, women’s participation stands at 10.5%, compared with 34.5% in the European Union. The widest disparity is recorded on boards of directors, where Cyprus trails the European average by 24 percentage points. Despite low representation in positions of power, Cyprus has higher employment rates than the EU average. According to Eurostat, employment stands at 85% among men and 75% among women. In the EU, the corresponding rates are 80.8% and 70.8%. The picture is also positive for youth unemployment, with the rate for people under the age of 25 standing at 13%, compared with 14.9% in the European Union. In education, Cyprus performs significantly better. A total of 64.4% of people aged 30 to 34 have completed tertiary education, compared with 44.7% in the EU. Among women, the tertiary education completion rate reaches 72.9% in Cyprus, compared with 50.2% in the EU. For men, the corresponding figures are 55.6% in Cyprus and 39.4% in the EU. Despite their higher level of education, women remain a minority in managerial positions and decision-making centres. The unequal distribution of unpaid work represents a significant obstacle. According to the European Institute for Gender Equality, 62.5% of women in Cyprus carry out housework every day, compared with 23.8% of men. In the EU, the corresponding percentages are 58.6% and 33.3%. For childcare of more than 35 hours per week, the proportion of women in Cyprus stands at 42.8%, compared with 14.8% of men. This unpaid work, which may amount to part-time or even full-time employment, is not reflected in economic indicators, but it affects women’s ability to work full time, their career advancement, income and future pension. Cyprus has made progress on the pay gap, although it remains slightly above the EU average. According to Eurostat, the gap stood at 11.8% in 2024, compared with 11.1% in the EU. It stood at 22.5% in 2002 and had fallen to 16.8% by 2010. The figures for 2024 are preliminary and may be revised. The Statistical Service’s 2022 Earnings Survey records differences in favour of men across a range of occupations. Among senior managers and administrative executives, average total annual earnings amount to €71,404 for men and €64,812 for women. Among managing directors, senior administrative executives and members of legislative bodies, men earn an average of €137,883, compared with €104,887 for women. Among lawyers and legal professionals, average annual earnings are €35,902 for men and €28,473 for women. An exception is legal associate professionals, among whom women have higher earnings. Specifically, women have average annual earnings of €23,253 compared with €21,377 for men, a difference of €1,876 in favour of women. Among accountants, auditors and tax advisers with a professional qualification, men have average annual earnings of €38,067, compared with €34,251 for women. Among accounting associate professionals without a professional qualification, the annual pay difference between men and women amounts to €1,325, with men earning an average of €29,217 and women €27,892. Among information and communication technology professionals, men earn an average of €50,193 and women €36,331. According to International Labour Organisation data included by Niki Christofi in her presentation, at the current rate of progress it will take until at least 2086 to achieve pay equality worldwide. Addressing inequalities is also linked to education from an early age, as stereotypes influence choices of studies and professions. According to Gender Equality Index data, 34% of Europeans believe gender stereotypes are spread through advertising and 33% believe they are reproduced by the media. Niki Christofi expressed her thanks to the Statistical Service of Cyprus for its valuable cooperation and support. Equality at work and female entrepreneurship Alexandra Theodorou, Chair of ICPAC’s Corporate Social Responsibility Committee, presented data on female entrepreneurship, saying that 87% of women worldwide consider adaptability a key factor in business resilience and 84% expect their company to grow over the next three years. A total of 74% consider staff retention and training a priority, while 77% believe equality on boards can be achieved within 15 years or sooner. Zenonas Clerides, Productivity Officer A, presented the activities of the Cyprus Productivity Centre. Particular reference was made to digital skills training programmes, which have been successfully attended by more than 10,000 participants. Nicos Philippou, Acting Director of the Productivity Centre, said the most important factor in improving efficiency and productivity at both personal and business level was upgrading digital skills and making proper and effective use of e-business. He said the CPC’s vision was the continuous promotion of lifelong learning and the upgrading of the country’s human resources. He also presented the SkillsCyprus 2026 National Skills Competition, which showcases young people’s talents in technical and vocational occupations. He also referred to new CPC initiatives: • Financial literacy: Developing adult education initiatives in cooperation with the Ministry of Finance and the Central Bank. • Support for small and medium-sized enterprises (SMEs): Creating educational programmes to strengthen SMEs’ export activity in cooperation with the Trade Service of the Ministry of Energy, Commerce and Industry. • Productivity in the public service: Implementing an Action Plan with PASYDY, which includes training initiatives and mechanisms through which citizens and businesses can submit suggestions for improving public services and e-government. Recruitment grants and investment in skills The Department of Labour and its Director, Alexandros Alexandrou, have consistently supported the conference, recognising the importance of providing businesses, professionals and employees with timely information and raising their awareness of developments and challenges in the modern labour market. The grant schemes were presented by Department of Labour officers Maria Kyriacou and Anna-Maria Angeli. A budget of €2 million and a target of covering 128 people are provided for the employment of people with disabilities, with a grant of up to €22,360 per participant for 24 months. The employment rehabilitation scheme for former prisoners has a budget of €4 million and aims to employ 200 people, with a maximum grant of €20,640. Schemes are also in place for 700 young people aged 15 to 29, 470 unemployed people over the age of 50, 470 economically inactive women and 815 unemployed women. Andri Kyriacou and Marios Nicolaou, officers at the Directorate of Training Services, presented the activities of the Human Resource Development Authority of Cyprus (HRDA). The schemes are aimed at employees, unemployed people, economically inactive people and the self-employed, and include, among other areas, training needs covering digital, green, business and vocational skills. With regard to the HRDA’s Scheme for Staffing Businesses with Tertiary Education Graduates, incentives are provided to businesses to offer jobs, practical training and six months of work experience to graduates under the age of 30, with a maximum grant of €9,288. Long-term unemployed people are offered opportunities to enter or re-enter employment, with a maximum grant of €5,592. Under the Individual Learning Accounts (ILA) Scheme, ILA beneficiaries are given the opportunity to upgrade their knowledge and skills by participating in training programmes through a credit of €2,400 available for three years. HRDA Director General Pambos Efstratiou said that, of the Authority’s 102 employees, 63% were women, who also held 53% of the organisation’s managerial and senior positions. He stressed that training and lifelong learning were crucial to narrowing the skills gap and creating equal opportunities for career advancement. He also pointed out that investing in policies that strengthen training and create inclusive employment opportunities was a strategic objective of the HRDA. Panos Demetriou, a Corporate Social Responsibility (CSR) expert, adviser to ICPAC’s CSR Committee and Head of CSR at Together Cyprus, linked sustainable work to decent and safe employment conditions, fair pay, social protection and respect for human rights. He also referred to the prevention of occupational risks, mental health, businesses’ ESG (Environmental, Social and Governance) obligations and the Sustainable Development Goals relating to health, gender equality, decent work and reducing inequalities. The overall picture shows that the transition to a modern labour market does not depend solely on the enforcement of laws. It requires businesses that invest in their people, fair and transparent pay, equal opportunities for advancement, effective inspections and continuous skills development. The objective is for the positive course of economic indicators to be translated into sustainable, high-quality employment. A modern labour market is judged not only by the number of jobs it creates, but also by whether those jobs offer decent pay, security, equal treatment, prospects for advancement and a genuine balance between work and personal life. 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