Salary growth in Cyprus outpaces the euro area average

Hourly labour costs in Cyprus increased by 3.7% year on year in the first quarter of 2026, outpacing the euro area average of 3.2% and the EU average of 3.6%. According to official Eurostat data, employers’ expenses directly for wage payments on the island rose by 3.8%, while in the euro area the increase stood at 3.4%.
The main driver of the change was the commercial sector of the Cypriot economy, where hourly personnel costs and net salaries jumped by 4.7%. At the same time, the trend in the non-manufacturing sector and the public sector was significantly weaker — there growth amounted to just 1% compared with the same period last year.