Average salary in Cyprus reaches €2,476 as wages rise 4.2 per cent

Average monthly earnings in Cyprus continued to rise during the second quarter of 2025, with gross salaries increasing by 4.2 per cent compared to the same period last year, according to provisional figures released by the Cyprus Statistical Service (Cystat) on Wednesday.

The figures show that the average gross monthly earnings of employees reached €2,476 between April and June 2025, up from €2,375 recorded in the second quarter of 2024.

The relatively high average is largely influenced by a small proportion of top earners whose salaries raise the overall mean, even though most workers earn far less.

This disparity highlights the continuing wage inequality across Cyprus, where the median wage remains significantly below the average.

Seasonally adjusted figures also revealed a quarterly increase of 0.9 per cent compared to the first quarter of 2025.

The statistical service reported that the second-quarter data are provisional and subject to revision in future updates.

Male employees earned an average gross monthly salary of €2,656, while female employees earned €2,251 during the second quarter of 2025.

This represents a year-on-year increase of 3.8 per cent for men and 4.7 per cent for women, continuing a gradual narrowing of the gender pay gap in Cyprus.

The statistical service added that seasonally adjusted earnings among male employees rose by 0.8 per cent quarter-on-quarter, while female employees recorded a 1.1 per cent rise.

In terms of income distribution, 36.1 per cent of employees earned less than €1,500 per month, while 40 per cent earned between €1,500 and €2,999.

A smaller segment of 12.8 per cent earned between €3,000 and €4,499, and 6 per cent fell within the €4,500 to €5,999 bracket, while 5.1 per cent earned €6,000 or more.

Breaking this down further, Cypriot nationals were more likely to fall within the middle-income brackets, with 44.1 per cent earning between €1,500 and €2,999, compared to 31.6 per cent of non-Cypriots.

Conversely, 48.7 per cent of non-Cypriot employees earned less than €1,500, compared to 29.9 per cent of Cypriots.

At the higher end, 7.7 per cent of non-Cypriots earned €6,000 or more, compared to 3.8 per cent of Cypriots, reflecting the presence of foreign professionals in senior or specialised roles.

For male employees, 32.7 per cent earned less than €1,500, and 41.7 per cent fell into the €1,500–€2,999 range, while 6.6 per cent earned €6,000 or more.

Among women, 40.3 per cent earned less than €1,500, 37.8 per cent earned between €1,500 and €2,999, and 3.2 per cent earned €6,000 or above.

Cystat clarified that these calculations are based on data collected from the records of the Social Insurance Services, which cover all employees except those working for private households or extraterritorial organisations.

Earnings figures include basic salary, cost of living allowance, overtime, holiday fund payments, bonuses and other allowances paid during the reference period.

The agency further explained that its earnings data exclude irregular employment cases, such as workers who received only arrears or worked a limited number of hours during the quarter.

Cystat also noted that temporary wage deductions and contributions made during earlier fiscal adjustment periods do not affect the gross earnings figures, which reflect total remuneration before any deductions.

The statistical service added that data on employees who participated in pandemic-related support schemes include only amounts paid by employers, excluding government allowances.

The next update to the earnings dataset is expected in early 2026, as part of Cystat’s quarterly labour cost and earnings report.

Wage growth trend continues from 2024

Earlier this month, the statistical service reported that average gross monthly earnings in Cyprus rose by 5.1 per cent to €2,483 in 2024.

In addition, the median gross monthly salary stood at €1,881 during the previous year, revealing that half of workers earned less than this amount.

This reflects ongoing income inequality, as higher salaries continued to push the average above the typical worker’s pay level.

Furthermore, the strongest wage growth in 2024 was seen in information and communication (ICT), which increased by 8.1 per cent, followed by health and social work activities with 7.6 per cent, and water and waste management with 6.9 per cent.

The highest average earnings were recorded in financial and insurance activities at €4,710, while the lowest were in agriculture, forestry and fishing at €941.

Salaries also rose across manufacturing, construction, transport, education, and the public sector.

Cypriot employees earned €2,506 on average, up 5.4 per cent, while non-Cypriots earned €2,434, up 4.3 per cent.

Median wages for Cypriots reached €2,053 compared to €1,544 for non-Cypriots, showing a significant gap between the two groups, despite increases across all major sectors.