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Cyprus Public Sector Workers To Receive Pay Rises Of Up To 7.4% In November

by THEFUTURE.TEAM

October 30, 2026

Hourly paid employees in Cyprus’s public sector are expected to receive long-awaited pay rises at the end of November, with increases backdated to October 1, 2026.

The agreement between the government and trade unions has been approved by the Council of Ministers. As the changes could not be included in October’s payroll, employees are expected to receive the increases the following month, including any retroactive payments.

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Final Steps Before Implementation

The Department of Public Administration and Personnel is expected to circulate the final agreement to employees and unions for formal approval before the renewed collective agreement is signed.

Employers including the State Health Services Organization and school boards will also need to receive official circulars before implementing the changes.

Pay Rises To Range From 3.5% To 7.4%

The government’s final proposal provides for a total increase of 3.5% over the 2025–2027 period, matching the term of the renewed collective agreement for hourly paid workers. A 2% rise will apply retroactively from October 1, 2026, followed by a further 1.5% from January 1, 2027.

The effective increase will be higher for some lower-paid employees, ranging from 3.5% to 7.4%. Workers earning €2,100 or more will receive the lowest rate, while those earning up to €979 will receive the highest.

The agreement also establishes a minimum amount for general pay increases to ensure that no employee’s salary falls below the minimum wage. Trade unions identified this safeguard as a key factor in reaching an agreement.

Unions Had Called For An 8% Increase

Trade unions had sought a total pay rise of 8% over the three-year period. The last increase for hourly paid government employees was 1.5%, awarded in October 2024.

Cyprus’s government workforce includes approximately 11,000 hourly paid employees.

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Cyprus Tax-To-GDP Ratio Rises To 36.3% In 2025

by THEFUTURE.TEAM

October 30, 2026

Cyprus’ tax-to-GDP ratio edged up to 36.3% in 2025, from 36% in 2024, remaining below the European Union and euro area averages, according to Eurostat.

Across the EU, the ratio rose to 40.7% from 40.2%, while the euro area average increased to 41.3% from 40.7%.

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EU Tax Revenues Reach €7.68 Trillion

The tax-to-GDP ratio measures revenue from taxes and net social contributions as a share of gross domestic product. It provides an indication of public revenue relative to the size of an economy, although national tax systems and social contribution rules vary.

EU governments collected €7.68 trillion in taxes and social contributions in 2025, an increase of €401 billion compared with the previous year.

France Records Highest Ratio

France had the EU’s highest tax-to-GDP ratio at 46%, followed by Belgium at 44.7%, Denmark at 44.3% and Austria at 43.9%.

At the other end of the scale, Ireland recorded the lowest ratio at 22.7%. Romania followed at 29.3%, Malta at 30.3% and Bulgaria at 30.6%.

Ratios Increase In 19 Member States

The tax-to-GDP ratio rose in 19 EU countries in 2025. Germany recorded the largest increase, climbing from 40.3% to 41.4%. Malta’s ratio rose from 29.3% to 30.3%, while Spain’s increased from 37.2% to 38.1%.

Eight member states recorded declines. Sweden saw the largest fall, from 41.8% to 41.2%, followed by Latvia, where the ratio dropped from 34.9% to 34.2%.

Cyprus’ 0.3-percentage-point increase was more modest than some of the changes elsewhere in the bloc. Its ratio nevertheless rose alongside the EU and euro area averages, reflecting a broader increase in tax and social contribution revenue relative to economic output.