Cyprus recorded an average annual full-time adjusted salary of €29,547 in 2025, up 5% year on year but still below the EU average of €41,464, according to Eurostat.
The figure represents around 71% of the EU average, leaving an annual gap of €11,917. Although salaries in Cyprus have grown faster than the EU average in recent years, the country continues to trail Spain, Italy and Malta, while remaining ahead of Greece and Portugal.
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Cyprus Salaries Are Growing Faster Than The EU Average
Cyprus’ average annual adjusted salary increased from €24,203 in 2022 to €29,547 in 2025, a rise of approximately 22.1%. Over the same period, the EU average grew by 16.2%, from €35,671 to €41,464.
In 2025, salaries rose by 5% in Cyprus, compared with 4.3% across the EU. This faster growth is gradually narrowing the gap, although average earnings on the island remain significantly below the European benchmark.
Cyprus also outperformed several central and eastern European countries, including Poland (€23,853), Romania (€20,818), Hungary (€20,138) and Bulgaria (€16,201). Greece recorded the EU’s second-lowest average, at €18,772.
How Cyprus Compares With Mediterranean Economies
Several southern European countries recorded higher salaries than Cyprus in 2025. Spain led the group at €35,125, followed by Malta at €35,003 and Italy at €34,213. Cyprus’ average was therefore between €4,666 and €5,578 lower.
By contrast, Cyprus was €3,345 ahead of Portugal (€26,202) and €10,775 above Greece. The figures show that while the country has moved ahead of some EU members, it still lags behind several Mediterranean peers.
Luxembourg And Denmark Top The European Rankings
Luxembourg recorded the EU’s highest average annual adjusted salary in 2025, at €85,609. Denmark followed with €73,500 and Ireland with €64,387. Belgium (€61,984), Austria (€60,727) and Germany (€56,360) also ranked among the highest-paying countries.
At the lower end, Bulgaria recorded the lowest average at €16,201, followed by Greece (€18,772) and Hungary (€20,138). Luxembourg’s figure was almost three times the Cyprus average, highlighting the substantial earnings differences across the EU.
Domestic Earnings Data Reveal A Wider Pay Divide
Separate figures from the Cyprus Statistical Service (Cystat) provide a closer look at the domestic labour market. Provisional estimates put average gross monthly earnings at €2,548 in the second quarter of 2026, up 3% from €2,475 a year earlier.
However, the average masks a wide income distribution. Some 33.6% of employees earned less than €1,500 a month, while 41.4% received between €1,500 and €2,999. Only 5.6% earned €6,000 or more.
Median earnings offer a clearer indication of what a typical employee receives, as high salaries can push up the average. Cystat’s 2025 figures put median gross monthly earnings at €1,953, compared with an average of €2,591, meaning half of employees earned less than the median.
Gender And Nationality Gaps Persist
The second-quarter figures also show a gender pay difference. Men earned an average of €2,708 a month, compared with €2,345 for women, a gap of €363. However, women’s average earnings increased by 4.1% year on year, outpacing the 2.1% rise among men.
Nationality also shaped the earnings distribution. Among Cypriot employees, 45.5% earned between €1,500 and €2,999 a month. Non-Cypriot employees were more concentrated in the lowest income bracket, with 46.3% earning less than €1,500.
Taken together, the Eurostat and Cystat figures show a mixed picture. Cyprus’ annual adjusted salaries are growing faster than the EU average, and the country remains ahead of Greece and Portugal. Yet it continues to trail several Mediterranean economies, while a substantial share of employees in the domestic labour market earn less than €1,500 a month.
