Wage growth with caveats: income gap widens in Cyprus

Cyprus recorded a 4.9% increase in average wages by the end of 2025, indicating an overall improvement in the economic situation. However, significant imbalances in the labor market are hidden behind this positive dynamic.

The median salary reached 1,968 euros, reflecting the position of the so-called "middle class" — workers with incomes ranging from 1,500 to 2,999 euros. Nevertheless, experts note a growing stratification: income distribution is becoming increasingly uneven.

According to the data, Cypriot citizens are more frequently represented in the middle and high-income groups, while foreign workers in most cases earn less than 1,500 euros. At the same time, there is a small proportion of foreigners with high incomes — over 6,000 euros, highlighting the heterogeneity of this group.

An additional factor remains the gender gap. Women continue to be underrepresented in high-paying categories, indicating persistent inequality in the labor market.

Thus, despite the general growth in wages, its effect is distributed unevenly. Economic indicators are improving, but not all groups of workers feel these changes to the same extent.