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IMF Evaluates Cyprus’ Public Wage Bill: Recommendations On The Horizon

In an ongoing assessment, the International Monetary Fund (IMF) is scrutinising Cyprus’ public wage bill to propose optimisations aimed at fiscal sustainability. A delegation from the IMF is currently in Cyprus, engaging with key ministries including Finance, Health, Education, and Justice, as well as statistical and fiscal authorities. This review seeks comprehensive data on public sector employment, salary scales, and historical wage adjustments, including the Automatic Indexation of Wages (ATA).

The IMF’s focus includes the financial impact of restoring salaries and allowances cut during the economic adjustment period and evaluating the number of public sector employees. Preliminary indications suggest recommendations may involve a gradual reduction in public sector personnel and a tiered approach to wage adjustments based on productivity, although measuring productivity in the public sector presents challenges.

This initiative follows a broader context where the IMF has consistently advocated for aligning wages with productivity to ensure economic efficiency. The outcome of this assessment will be critical for Cyprus as it navigates its fiscal policies and public sector management.

As Cyprus anticipates the IMF’s recommendations, the government is concurrently addressing workforce needs, evidenced by a recent request to unfreeze 1,311 public sector positions. This balance between maintaining public sector efficiency and ensuring fiscal prudence underscores the complexity of public wage management.

The IMF’s final report will likely shape future policy directions, aiming to enhance the sustainability of Cyprus’ public finances while addressing the intricacies of public sector employment and compensation.

UAE Job Trends For 2025: High-Demand And Lucrative Roles Revealed

The UAE’s flourishing asset management sector, bolstered by rising investor interest, regulatory advancements, and a surge in Family Offices and Ultra High Net Worth Individuals (UHNWIs), is driving demand for banking and finance talent.

Roles in fundraising and institutional sales are particularly sought after, with professionals in these fields highly valued for their regional networks and industry expertise, according to Michael Page’s UAE 2025 Salary Guides. The comprehensive report, which includes insights from 17 industries, offers an overview of current hiring trends, salary benchmarks, and the recruitment challenges businesses face.

Banking And Finance In High Demand

The report highlights a significant need for compliance professionals, especially those with experience in Dubai Financial Services Authority (DFSA) and Financial Services Regulatory Authority (FSRA) regulations. Chief Compliance Officers and Money Laundering Reporting Officers (MLROs) are among the most lucrative roles in the sector. Jon Ede, Regional Director UAE at Michael Page, pointed out that in 2024, the UAE’s workforce grew by 9%, and the number of new companies increased by 14.5%, showing the success of the nation’s strategic initiatives.

Sales, Marketing, And IT Growth

The sales and marketing sector has seen steady growth, especially in B2B industries like technology, real estate, energy, and logistics. Roles such as Business Development Manager, Chief Commercial Officer, and Strategic Sales Director are in demand, with a premium placed on business development, key account management, and communication skills.

The IT sector, meanwhile, continues to evolve rapidly, with high demand for positions like Head of Software Development, Full-Stack Software Engineer, Agile Product Manager, Senior DevOps Engineer, and Digital Adoption Specialist. The report underscores the significant shift in the UAE talent market for digital professionals in recent years.

Navigating The Skills Shortage

The study also highlights the growing skills shortage, with businesses grappling to find candidates with the right expertise. A staggering 37% of business leaders reported challenges in finding skilled talent, while nearly a third (30%) struggled with employee retention. Nearly half (48%) of employers also cited aligning salary expectations with candidates as a key obstacle.

Ede suggests that businesses can overcome these challenges by offering competitive packages that include benefits, career development opportunities, and workplace incentives, positioning themselves as attractive employers in the competitive UAE job market.

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