Averof: "The President of the Republic called on the IMF to fix the state payroll, but he himself messed it up."

In January 2024, the Cypriot President commissioned the IMF to study and streamline the public sector payroll, which he considered flawed. The IMF found that public sector employees earn significantly more than private sector workers and proposed measures to control payroll growth, including increased employee mobility and reduced overtime. Despite this, the public sector payroll has increased substantially since the study was commissioned and is projected to continue rising. Concerns are mounting that this growth threatens fiscal stability and may impact future pensions. The current salary increases are being financed by future pensions.