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Minimum Wages in Cyprus - Frequently Asked Questions

Is there a separate legislation relating to minimum wages in Cyprus?

The minimum wage is revised annually by an Order of the Ministerial Council that comes into force on 1 April of each year. The minimum wage is frozen since the 1st of April 2012.

Do one or more minimum wages exist that is/are determined by law?

The Minimum Wage Order of 2012 applies from the 1st of April, and is applicable for certain occupations (shop assistants, clerks, child-care workers (assistant baby and child minders), personal care workers (nursing assistants). Furthermore, the Order provides for a minimum hourly rate of pay for security guards, and cleaners of business/corporate premises. The minimum monthly wage upon recruitment was revised to €870, while the minimum monthly wage for employees, who have completed a six month period of employment at the same employer, was revised to €924. The minimum wage for security guards was revised to an hourly rate of €4,90 and upon completion of a six month period of employment at the same employer is increased to €5,20.

The hourly rate of pay for newly recruited cleaners is €4,55 and upon completing six months of employment at the same employer is increased to €4,84. It should be noted that the normal working hours of shop assistants according to the relevant Law, must not exceed 38 hours weekly and 8 hours daily, whilst for clerks the working hours should not exceed 44 hours in total per week (including any overtime) or 8 hours daily (normal working hours are usually 38 to 40 hours based on normal practice and agreement with each employer). For more please see http://www.mlsi.gov.cy/mlsi/dlr/dlr.nsf/All/F039CE17CA09933AC2257A9300246936?OpenDocument.

On what basis is minimum wage calculated?

For all categories applies the monthly rate. The Order also provides for a minimum hourly rate of pay for security guards, and cleaners of business/corporate premises. The minimum wage for security guards was revised to an hourly rate of €4,90 and upon completion of a six month period of employment at the same employer is increased to €5,20. The hourly rate of pay for newly recruited cleaners is €4,55 and upon completing six months of employment at the same employer is increased to €4,84. The minimum monthly wage upon recruitment was revised to €870, while the minimum monthly wage for employees, who have completed a six month period of employment at the same employer, was revised to €924.

In case of weekly/monthly minimum age, are they based on any fixed number of hours?

The normal working hours of shop assistants according to the relevant Law, must not exceed 38 hours weekly and 8 hours daily, whilst for clerks the working hours should not exceed 44 hours in total per week (including any overtime) or 8 hours daily (normal working hours are usually 38 to 40 hours based on normal practice and agreement with each employer).

Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?

Council of Ministers, Employers organisations: OEB-Cyprus employers and Industrialists Federation, KEBE- Cyprus Chamber of Commerce and Industry, SEK-Cyprus Workers' Confederation, PEO-Pancyprian Federation of Labour, DEOK-Democratic Labour Federation of Cyprus, Officer or the Director of the Department of Labour Relations are involved in minimum wage setting.

How are upratings (adjustments) of minimum wage/s decided upon?

The Labour Advisory Board of the Ministry of Labour and Social Insurance, appoints a tripartite technical committee. The tripartite technical committee is made up of representatives of the trade unions (SEK, PEO, DEOK), and the employers organisations (OEB, KEBE), and are presided by an Officer, or the Director of the Department of Labour Relations.

The usual procedure followed is the discussion of the draft legislations in detail, with each participating organisation expressing and submitting its views and opinions on possible changes/amendments. This procedure is a democratic form of discussing issues that at the end of the day have an effect on the whole population, whether these are employers or employees.

The proposal is sent to the Ministers’ Council which can be accepted, rejected or modified. Which are the components of minimum wage in Cyprus? -- Initial employment and six months later.

How frequently is the fixed component of minimum wage updated?

Until April 2012 the fixed component was updated every year. Currently this procedure is frozen.

What is/are the yardstick/s on which minimum wage upratings are based?

Wage indexation & consumer price indexation are the yardsticks on which minimum wage upratings are based.

What is National Poverty line?

Click here to know the national poverty line in context with Minimum Wage, living wages and actual wages. Select the currency (Euro or national currency) to know national poverty line.</a

How is minimum wages compliance regulated?

The Ministry of Labour and Social Insurance's Department of Labour Relations appoints inspectors.

Which legal sanctions can be applied in compliance is lacking?

Any employer who pays less than the minimum wage to an employee belonging to any of the occupations covered, is guilty of an offence and is liable, on conviction, to a fine not exceeding €170 and to an additional fine not exceeding €42 for every day of contravention of the Order after conviction. In case of conviction of the employer, the employee may claim payment of the difference between his wage and the minimum wage, for a period of up to two years before the date of complaint.

Are sanctions often being applied?

During 2013, the Department of Labour Relations has proceeded with 586 penal prosecutions for violations of the labour legislation (concerning minimum wage, written notice, shops, protection of wage and recreation establishments). 447 of these prosecutions were heard in court and penalties amounting to € 215.690,00 were imposed. More info http://www.mlsi.gov.cy/mlsi/dlr/dlr.nsf/page20_en/page20_en?OpenDocument

Are employer and/or trade union representatives involved in compliance procedures?

Employer and/or trade unions are not involved in compliance procedure.

To whom/Where can individuals complain, if they think they are earning less than minimum wage?

In case of non compliance individuals can complain to labour inspectors and trade unions

Which month of the year is minimum wage rate revised in Cyprus?

Before 2012, it used to be April.

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