Wage growth and social costs drive up Cyprus’ hourly labour rates

Labour costs in Cyprus rose significantly in the final months of 2025, according to official figures, adding further pressure to the country’s inflation outlook.

Specifically, the Cyprus Statistical Service, using preliminary data, found an increase in hourly labour costs during the fourth quarter of 2025.

The figures indicate that hourly labour costs recorded an annual increase of 2.7 per cent in the fourth quarter of 2025 compared with the same quarter of the previous year.