Cyprus - Agreement on Cost-of-Living-Allowance - November 30, 2025

The Government, employers’ associations and trade unions reached an agreement to reinforce the Cost‑of‑Living Allowance (COLA) and restore it to full indexation by mid‑2027, linking the mechanism to the national minimum wage across sectors. The final framework provides for a gradual return to 100% COLA adjustment over three phases: 80% on 1 January 2026, 90% on 1 July 2026, and 100% on 1 July 2027. Following the phase-in, the adjustment will be made every July at 100%. This represents a significant step in stabilising wages amid inflationary pressure and low real‑wage growth.

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For more information, please contact Paul de Beer or Oana Ciuca, De Burcht (Scientific Bureau for the Dutch Trade Union Movement) p.t.debeer@uva.nl or the Head of communications at the ETUI, Mehmet Koksal mkoksal@etui.org. For previous full issues of the Collective bargaining newsletter please visit https://www.etui.org/Newsletters/Collective-bargaining-newsletter or consult the archive with all articles in our database at www.cbnarchive.eu.
You may find further information on the ETUI at www.etui.org.