Answer ... In general, salary is not regulated by law and can be negotiated by the employer and employees (or their representatives) through individual or collective agreements.
However, by decree of the Council of Ministers, which will come into force on 1 January 2023, a new minimum wage has been set for all employees working in Cyprus, excluding the below categories:
- domestic workers;
- agricultural and livestock workers;
- maritime workers;
- employees who benefit from more favourable arrangements by law, contract, practice or custom;
- employees in the hotel industry covered by the Decree on Minimum Wage in the Hotel Industry of 2020; and
- all employees who receive training or education provided for by law, practice or custom to obtain a diploma and/or to practise a profession.
In the case of seasonal workers under 18 years of age whose duration of work does not exceed two consecutive months, the minimum wage may be reduced by 25%. Further, the minimum wage of employees whose food is covered by the employer may be reduced by 15% and when accommodation is covered by a further 10%. The employee nevertheless retains the right to terminate such an arrangement by providing 45 days’ notice to the employer.
The new minimum wage for a full-time employment, as of 1 January 2023, will be set at €885 per month, which increases to €940 after six months of continuous employment with the same employer.
Currently, and before the new Decree on Minimum Wage of 2022 comes into effect in January 2023, there are certain occupations for which the minimum wage is set by a 2012 decree of the Council of Ministers. Those occupations are:
- clerks;
- shop assistants;
- school assistants;
- childcare workers; and
- nursing assistants.
Currently, employees in the above categories are entitled to at least €870 per month, which increases to €924 after six months of continuous employment.
Security guards and cleaners of business or corporate premises are also covered by minimum wage provisions. The minimum wage for security guards was revised to an hourly rate of €4.90, and, upon completion of a six-month period of employment at the same employer, is increased to €5.20. The hourly rate of pay for newly recruited cleaners is €4.55 and, upon completion of six months of employment at the same employer, is increased to €4.84.
The 2012 decree of the Council of Ministers will be repealed on 1 January 2023 when the new decree will come into effect.
There is also an additional decree on minimum wages for 19 categories of professions within the hotel industry. Depending on the position, these vary between €870 and €1,070 per month and/or between €5.28 and €6.32 per hour.