**Minimum Wage Bill to Be Presented to Parliament by Year’s End**
The Labour Minister of Cyprus, Marinos Mousiouttas, announced on Sunday that a bill aimed at establishing minimum wages will be submitted to the House of Representatives by the end of this year. This development comes in response to a query from Limassol MP Dimitris Souglis regarding the progress of harmonization with the European Union Directive 2022/2041, which pertains to adequate minimum wages.
Mousiouttas indicated that the bill is currently undergoing a legislative review by the Legal Service. He explained that the harmonization process has faced delays, partly due to a lawsuit pending before the EU Court of Justice. This lawsuit was initiated by Denmark, which has contested the legal basis of the directive. The minister noted that a recent decision from the Court has been a significant step forward in advancing the harmonization efforts.
In his remarks, Mousiouttas emphasized that the provisions of the Minimum Wages Law of 2022, along with the relevant Decree, are already being implemented in Cyprus. He described these measures as crucial for the protection of workers and part of a broader strategy to promote adequate minimum wages within the country.
In addition to the minimum wage bill, the Labour Minister revealed that a bill focusing on salary transparency is anticipated to be presented to the Council of Ministers in September. Furthermore, an action plan aimed at strengthening collective bargaining is expected to be finalized by November.
Responding to a question from Famagusta MP Giorgos Koukoumas, Mousiouttas stated that a separate bill for harmonization with EU Directive 2023/970, which addresses equal pay and pay transparency, is also expected to be submitted for approval to the Council of Ministers in September. This bill has already been discussed with both employers' organizations and unions, and the draft has been forwarded to the Legal Service for legislative review.
As part of the proposed measures, employers will be required to submit data regarding the gender pay gap, with the first deadline set for June 6, 2027. To facilitate salary transparency, the Ministry has initiated several infrastructure projects, including the eValueJobs project, which was completed in June at a cost of €52,117. Additionally, the Support Measures for Wage Transparency project, which totals €1.1 million, is set to be implemented by December 2027. This project will include an information system for employers to submit data on the pay gap.
Regarding collective agreements, Mousiouttas noted that approximately 40 percent of employees in Cyprus are currently covered by such agreements, which encompass both the private and wider public sectors. He highlighted that the Cypriot labor relations system is founded on free collective bargaining and tripartite cooperation, stating that there is no specific legislation mandating that all sectoral collective agreements be universally binding across a sector.
Collective agreements are presently in effect in various industries, including hotels, construction, furniture and carpentry, vehicle workshops, and the mosaic industry. Corporate collective agreements also exist in sectors such as banking, ports, fleet management, manufacturing, and services, as well as in organizations within the wider public sector.
The Ministry is actively engaging with social partners to develop an action plan aimed at increasing the coverage of collective bargaining. This plan is expected to be completed by November 2026 and will subsequently be submitted to the European Commission for review.
The anticipated legislative changes reflect Cyprus's commitment to aligning its labor policies with EU standards, particularly in terms of minimum wage and pay transparency, while also promoting the welfare of workers through enhanced collective bargaining practices.