Following a comprehensive meeting of the Minimum Wage Determination Commission, Cyprus has announced a significant increase in the country’s minimum wage. Effective January 1, 2024, the new net minimum wage will be set at 24,000 Turkish Liras (TRY), while the gross minimum wage will increase to 27,587 TRY.
The hourly minimum wage will also see a notable boost, reaching 159 TRY. This translates to a daily wage of 1,273 TRY.
The decision to raise the minimum wage is intended to alleviate the financial burdens faced by low-income workers and promote a more equitable distribution of income across the country. It is also expected to boost consumer spending and stimulate economic growth.
However, some economists have expressed concerns that the minimum wage increase could lead to higher inflation and increased production costs for businesses. They argue that these factors could ultimately offset the benefits of the wage hike for workers and consumers.
Despite these concerns, the government of Cyprus believes that the positive effects of the minimum wage increase outweigh the potential risks. They remain committed to improving the living standards of workers and fostering a more inclusive economy.
