Cyprus Labour Costs Set At €21.7 In 2025 As EU Averages Reach €34.9

Overview Of Eurostat’s Findings

Eurostat data show that average hourly labour costs in Cyprus are projected to reach €21.7 in 2025. Non-wage costs, including social contributions, account for 19.4% of total labour expenses, reflecting the structure of employment costs in the country.

Regional And Sectoral Comparisons

Across the European Union, average hourly labour costs are expected to increase from €33.5 in 2024 to €34.9 in 2025, while in the euro area they are projected to rise from €36.8 to €38.2. Eurostat data indicate annual increases of 4.1% across the EU and 3.8% in the euro area, pointing to continued upward pressure on labour costs.

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Country-Level Divergence

Most euro area countries recorded increases, although Malta reported a decline of 0.5%. Higher growth rates were observed in Bulgaria (13.1%), Croatia (11.6%), Slovenia (9.3%), and Lithuania (9.2%), while more moderate increases were recorded in France (2.0%) and Italy (3.2%). Cyprus, Spain, and Luxembourg each reported a 3.5% increase.

Disparities And Implications Across The EU

Significant differences remain across member states in absolute labour cost levels. Lower hourly costs were recorded in Bulgaria (€12.0), Romania (€13.6), and Hungary (€15.2), while higher levels were observed in Luxembourg (€56.8), Denmark (€51.7), and Netherlands (€47.9).

Non-wage costs accounted for 24.8% of total labour costs in the EU and 25.6% in the euro area. Lower shares were recorded in Romania (4.8%), Lithuania (5.5%), and Malta (5.8%), whereas higher shares were observed in France (32.3%), Sweden (31.7%), and Slovakia (28.6%).

Broader Employment Cost Trends Outside The Eurozone

Labour costs also increased in EU countries outside the euro area when measured in national currencies. Higher growth rates were recorded in Romania (10.6%), Hungary (8.9%), and Poland (8.8%), while Denmark reported a more moderate increase of 3.0%.

Conclusion

Eurostat data point to continued growth in labour costs across Cyprus and the European Union, alongside notable differences between countries. These trends may influence wage developments, labour market conditions, and business costs across the region.

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Eurobank Wins Two Euromoney Awards Following Cyprus Merger

by THEFUTURE.TEAM

July 17, 2026

Eurobank has been named Cyprus’ Best Bank for 2026 by Euromoney, while also receiving the award for Best Bank for Large Corporates at the publication’s latest Awards for Excellence.

Merger Marks A Milestone

The awards recognise the bank’s performance during 2025, a year marked by the completion of the legal merger between Hellenic Bank and Eurobank Cyprus. The transaction created Eurobank Limited, which the group says is now Cyprus’ largest banking and insurance organisation, with assets exceeding €28 billion.

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Euromoney’s Awards for Excellence evaluate banks’ performance over the previous calendar year, with this edition covering January 1 to December 31, 2025.

Lending, Customers And Digital Growth

Eurobank said its business lending portfolio expanded by around 17 per cent during 2025, while its customer base grew to more than 710,000 retail clients and 11,500 business customers.

The bank also continued its digital expansion, saying more than 96 per cent of transactions are now completed through digital channels, and most financing applications are submitted via its mobile app.

Expanding International Presence

Eurobank also highlighted the opening of its first representative office in India, describing the move as a step toward strengthening business links between Cyprus and India while supporting Cyprus’ role as a gateway to the European Union for Indian businesses and investors.

According to the bank, Euromoney recognised not only the successful completion of the merger but also its lending growth, digital transformation and contribution to Cyprus’ position as an international business and investment hub.

CEO On The Awards

“The Euromoney awards confirm Eurobank’s strong momentum and the successful implementation of our group’s strategy in Cyprus,” Chief Executive Michalis Louis said.

He said the merger strengthened the bank’s ability to support households, businesses and the wider economy, while highlighting continued investment in digital services and the opening of the representative office in India as key milestones during the year.

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