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Cyprus Expected Working Life Reaches 39.5 Years, Above EU Average

People in Cyprus are expected to spend 39.5 years in the workforce, around two years longer than the European Union average of 37.5 years, according to the latest Eurostat data for 2025.

The figure places Cyprus among the EU countries with the longest expected working lives.

Cyprus Ranks Above EU Average

Only a handful of member states recorded higher figures than Cyprus. The Netherlands topped the ranking at 44 years, followed by Sweden at 43.4 years, Denmark at 42.6 years, and Estonia at 41.5 years.

At the other end of the ranking were Romania with 32.7 years, Italy with 33.0 years, Bulgaria with 34.6 years and Greece with 35.3 years.

Gender Gap Remains Wider Than EU Average

Men in Cyprus are expected to remain in work for 42.1 years, compared with 36.7 years for women. The gap of 5.4 years exceeds the EU average gender gap of 4.1 years.

Across the bloc, Lithuania, Latvia and Estonia were the only countries where women were expected to spend longer in employment than men. Finland recorded the smallest positive gender gap at 0.7 years.

Italy posted the widest gap at 8.9 years, followed by Romania at 6.9 years, Greece at 6.7 years and Malta at 6.3 years.

Working Lives Continue To Lengthen

Between 2016 and 2025, expected working life in Cyprus increased by 3.5 years, placing the country among the strongest performers in the EU over the period. Men’s expected working life rose by 3.3 years, while women’s increased by 3.6 years.

Across the EU, every member state recorded an increase. Malta posted the largest gain at 4.9 years, followed by Hungary and Ireland at 4.2 years each, and the Netherlands at 4.1 years.

Malta’s increase was driven largely by women, whose expected working life rose by 7.8 years, the biggest increase recorded across the bloc.

By comparison, Romania, Spain, Italy, Germany and Austria recorded gains of two years or less over the same period.

Women’s Working Lives Increase Faster Across Europe

Women’s expected working life increased faster than men’s in most EU countries. Denmark, Romania, Sweden and Greece were the main exceptions.

In Cyprus, gains for men and women were broadly similar, alongside Bulgaria, Belgium and Slovenia.

Cyprus Raises Municipal Funding Under New Government Formula

New Agreement Eases Pressure On Local Authorities

After months of consultations, Cyprus’ Ministries of Interior and Finance have agreed on a new funding formula for municipalities, changing how state support for local authorities will be calculated in the coming years.

According to Phileleftheros, the revised proposal consolidates several state funding streams into a single annual grant while increasing overall support, addressing one of the municipalities’ key requests.

Unified Annual Grant Rises To €144 Million

Under the new framework, the €117 million annual grant introduced in 2022 will be combined with other forms of state support. As a result, municipalities will receive approximately €144 million a year.

Included in the package are €15 million for the maintenance of primary roads and €12 million to offset revenue losses from licensing fees. Although government estimates for road maintenance differed from those of local authorities, the administration ultimately agreed to adopt the municipalities’ figures.

Three-Year Review Mechanism Introduced

Municipal funding will now be reviewed every three years based on state expenditure levels, with the first review scheduled for 2027. The change is intended to give local authorities greater certainty when planning future budgets.

Future allocations will be adjusted using 50% of the growth in the government’s net primary expenditure, as defined under the Medium-Term Fiscal Structural Plan.

What The Reform Means For Municipal Budgets

Overall, the revised formula lifts the consolidated annual subsidy to €147.888 million, providing municipalities with a more predictable funding base for long-term planning and investment.

Beyond the direct grant, the government will continue financing a significant share of municipal planning and urban development projects, maintaining its role in supporting local infrastructure.

Future Funding Linked To Public Spending

The agreement follows months of negotiations between the government and municipalities over the level of state support. It also establishes a clearer framework for future funding increases by linking municipal grants to growth in public spending.

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