Cyprus’ hourly labour costs saw a modest increase yet remain below the European average, according to the latest Eurostat data.

The average hourly labour cost in Cyprus in 2024 rose to €21, marking a €1 increase from €20 in 2023.

This growth is part of a broader upward trend observed since 2008, with Cyprus’ labour costs climbing by 25.74 per cent from €16.7.

Despite this increase, these costs are still 11.34 per cent lower than the European average.

Broadly, the average hourly labour costs across the EU and eurozone in 2024 stood at €33.5 and €37.3 respectively.

However, these averages obscure the significant variations among EU nations, where hourly labour costs range from as low as €10.6 in Bulgaria to a peak of €55.2 in Luxembourg.

Sector-specific data within Cyprus shows that public administration leads in wages, with an average hourly cost of €31.1.

Although this is higher than other sectors within the country, it still falls short of the €34.2 in the eurozone and €37.5 across Europe.

By contrast, the industrial sector in Cyprus offers the lowest wages, averaging just €16 per hour—substantially lower than the top-paying industry wages in Europe at €39.8 per hour.

The construction sector in Cyprus also lags European averages, with wages at €16.7 per hour compared to Europe’s €33.4.

Similarly, the business economy sector in Cyprus shows average hourly earnings of €19.2, versus €33.2 in the eurozone and €37.2 across Europe.

The services sector in Cyprus is closer to the eurozone average at €20.4 per hour, but still significantly trails the European average of €36.4.

This year’s data also highlights significant variations in the rate of increase in hourly labour costs across the euro area, with Croatia, Latvia, and Lithuania experiencing the largest increases.

In contrast, the smallest increases were noted in the Czech Republic, Finland, and Luxembourg.

For countries outside the euro area, significant rises were recorded in Romania, Bulgaria, Hungary, and Poland.

The disparities across the EU continue, with countries reporting varied hourly wages—from Greece at €16.7 and Latvia at €15.1, to Germany at €43.4 and the Netherlands at €45.2.