President Nikos Christodoulides is meeting on Monday with the heads of Cyprus’ trade union organisations to discuss the framework for the cost-of-living allowance (CoLA).

The meeting follows Sunday’s discussions between the president and the heads of employers’ organisations. According to government spokesman Konstantinos Letymbiotis, the talks are part of the ongoing dialogue that began on Friday between the ministers of finance, labour and representatives of both trade unions and employers’ groups. That meeting produced a preliminary framework of common ground on the CoLA, which was initially accepted by trade union leaders.

The CoLA, which adjusts wages in line with inflation, was suspended during the financial crisis and later partly restored. Trade unions have been calling for its full reinstatement to protect workers from rising prices, while employers warn that such a move would raise labour costs and threaten business competitiveness. The government has sought to mediate through a series of structured meetings in Nicosia, aiming to secure a balanced agreement. Employers are expected to hold a joint session on Wednesday to decide their final position on the issue.

Letymbiotis said the president’s meeting on Sunday night with employers’ organisations was attended by the ministers of finance and labour. The discussion covered the proposed framework for the CoLA, the upcoming tax reform, and broader economic issues. Employers’ organisations are expected to hold a joint meeting on Wednesday to reach a final decision on their position regarding the CoLA, the spokesman added.