20 per cent of workers in Cyprus were classified as low-wage earners in 2022, compared to 14.7 per cent across the European Union (EU), according to a report by Eurostat.

In addition, it should be noted that the EU-wide figure marked a decline from the share of 16.2 per cent recorded in 2018.

Low-wage workers are defined as those earning two-thirds or less of the median gross hourly earnings in their country of employment.

Gender and age disparities in low-wage employment

The Eurostat report highlighted a gender disparity in low-wage employment, with 17.1 per cent of women classified as low-wage earners in 2022, compared to 12.6 per cent of men.

Additionally, younger workers were disproportionately affected, with 25.2 per cent of employees under the age of 30 falling into the low-wage category.

In contrast, this figure dropped to 12.1 per cent for workers aged 30-49 and 13.4 per cent for those over 50.

Education levels also played a significant role, the report showed.

Among EU workers with low educational attainment, 27.5 per cent were classified as low-wage earners in 2022, compared to 17.5 per cent for those with medium-level education and only 4.8 per cent for highly educated workers.

Low-wage workers across EU member states

The proportion of low-wage workers varied significantly across EU countries in 2022.

Bulgaria recorded the highest share at 26.8 per cent, followed by Romania (23.9 per cent), Latvia (23.3 per cent), Greece (21.7 per cent), Estonia (21.2 per cent), and Cyprus (20 per cent).

Conversely, less than 10 per cent of workers were classified as low-wage earners in Portugal (1.8 per cent), Sweden (4.1 per cent), Finland (6.5 per cent), Italy (8.8 per cent), Slovenia (9.4 per cent), and both France and Denmark (9.7 per cent each).

Cyprus records highest wage disparity

The Eurostat report also revealed there is significant wage inequality in Cyprus.

The top 10 per cent of earners in the country made 2.5 times the median salary, the highest disparity recorded in the EU in 2022.

Following Cyprus in terms of income inequality were Bulgaria, Portugal, and Romania (each with a ratio of 2.4), Ireland, Luxembourg, and Latvia (each at 2.2), and Hungary (2.1).

Finally, the report showed that the lowest wage disparities were observed in Sweden and Belgium (both at 1.6), followed by Finland and Denmark (both at 1.7).