OEB circular announces salary adjustment from July 1, 2026 due to automatic indexation

Following the circular issued by the Cyprus Employers and Industrialists Federation (OEB) dated January 8, 2026, it is reminded that starting from July 1, 2026, businesses that adjust employee salaries based on the Automatic Indexation (ATA) will be required to pay an additional amount.

Specifically, they must pay either:

• an additional 0.02% on the total salaries in force on December 31, 2025 (totaling 0.12%)
• or an additional 0.03% on basic salaries (totaling 12.70%)

The relevant circular from the Ministry of Finance is attached. For further clarifications, contact the Department of Labor Relations & Social Policy of OEB at tel. 22-643000.