OEB highlights key labor issues in 2025

On the occasion of the Annual General Meeting of the Cyprus Employers & Industrialists Federation (OEB) to be held on Tuesday, April 28, 2026, and addressed by the President of the Republic 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, containment of labor costs, and safeguarding competitiveness.

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

Key labor developments of 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 renewed in May 2023.
• A permanent agreement on the ATA was signed on November 13, 2025, with phased increases in the Indexation Allowance rate from 66.7% to 100% by July 2027.
• The 2022 Strategy for the Employment of Foreign Workers was revised in February 2025, simplifying procedures for employing foreign workers from third countries.
• Discussions on pension reform were initiated, aiming for a sustainable system aligned with international standards and best practices.
• From January 1, 2026, the minimum wage increased to €979 gross, with a subsequent increase to €1088 after six months of employment.
• OEB proposed legislating an agreement on the Labor Dispute Resolution Procedure in Essential Services to address strikes affecting public services.
• Throughout 2025, OEB engaged in legislative activities, European project implementation, promotion of female entrepreneurship, and gender equality initiatives.

  The annual report detailing these activities will be discussed at the upcoming General Assembly on April 28, 2026, in Nicosia.

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