Labor costs in Cyprus rose 3.8% year on year in the second quarter of 2026, according to provisional figures from the Statistical Service, or Cystat.
The increase accelerated slightly from 3.4% in the first quarter and exceeded the 3.7% rise recorded a year earlier, pointing to continued pressure on employers’ staffing costs.
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Wages And Non-Wage Costs Both Rise
Wages and salaries per hour worked increased 3.9% from a year earlier, while non-wage costs rose 3.6%. Both rates were higher than in the first quarter, when wage costs increased 3.4% and non-wage costs 3%.
On an unadjusted basis, the total labor cost index rose to 121.87 in the second quarter, from 119.43 in the previous quarter and 117.38 a year earlier, using 2020 as the base year.
The wages and salaries index reached 122.20, compared with 119.79 in the first quarter and 117.64 a year earlier. The non-wage cost index rose to 120.48 from 117.92 and 116.33, respectively.
Quarterly Growth Also Picks Up
After seasonal adjustment, total hourly labor costs increased 1% from the previous quarter. Wages and salaries also rose 1%, while non-wage costs increased 0.9%.
That was faster than the quarterly growth recorded a year earlier, when seasonally adjusted total labor costs and wages each rose 0.6% and non-wage costs increased 0.5%.
The latest figures show that labor costs continue to rise in Cyprus, with both wages and additional employment expenses contributing to the increase.
