President Christodoulides marks Labor Day with summary of government economic policies

On May 1, 2026, Cyprus President Nikos Christodoulides issued a statement honoring Labor Day and the historical struggles for workplace safety and dignity. The President highlighted his government's accomplishments since 2023, attributing them to prudent fiscal policies and a social liberal framework. Key measures mentioned include a 13.6% increase in the national minimum wage, which rose from 940 euros in 2023 to 1,088 euros in 2026. A tax reform implemented on January 1, 2026, increased the tax-free income threshold from 19,500 to 22,000 euros, affecting approximately 200,000 workers. Additionally, the Cost of Living Allowance (ATA) was adjusted, increasing from 50% to 66.7%, with a further agreement reached in November 2025 for a gradual restoration. The government also reported increases in the minimum Social Insurance Fund pension and social pensions. The administration stated its ongoing commitment to pension reform and improving the standard of living for employees and retirees.