Hourly labour costs in Cyprus rose by 3.5% in the third quarter of 2025, marking a notable increase compared to the same period last year, according to provisional data from the Statistical Service (Cystat) released on Tuesday.
This rise in labour costs can be attributed to increases in both wages and non-wage costs. Specifically, wages and salaries per hour worked saw a 3.5% increase, while non-wage costs per hour worked rose by 3.6% when compared to the third quarter of 2024.
The data also revealed that, when adjusted for seasonal fluctuations, the hourly labour cost recorded a 0.9% increase in comparison to the previous quarter. This seasonal adjustment also showed similar growth rates for both wages and salaries, as well as non-wage costs.
The Labour Cost Index, which measures changes in hourly costs borne by enterprises for employing labour, encompasses all economic activities except for agriculture, forestry, fishing, households as employers, and extraterritorial organisations and bodies.
These increases in labour costs align with broader trends observed in various sectors of the economy, highlighting the ongoing economic dynamics in Cyprus. Stakeholders within the labour market will be closely monitoring these trends, as they can have implications for business costs and wage negotiations in the future.
