Cyprus ministry of finance announces civil service pay increases for 2027-2029

The Cyprus Ministry of Finance has issued a circular regarding the 2027 state budget and the 2027-2029 Medium-Term Fiscal Framework, outlining salary adjustments for public servants. For the 2027-2029 period, a general salary increase of 1.5% will be implemented alongside annual increments. The Cost of Living Allowance (COLA) will be adjusted to 100% of the preceding year's rate, capped at a 4% increase annually, based on an agreement with social partners. The specific COLA projections for the period from 2027 to 2030 range between 0.12% and 4%, depending on the specific time frame. A 10% reduction in entry-level salary scales remains in force, though employees may move to the standard starting grade after two years of service. While salary packages are projected to rise, the Ministry of Finance has emphasized the need for cost control, suggesting that hourly government staff levels should be reduced where possible and seasonal staff maintained at 2026 levels. Official documents provide detailed wage tables showing the gradual growth of compensation across various salary scales, such as the A1 and A8 grades, due to the cumulative effect of increments and COLA. The government aims to manage payroll growth while honoring existing legal and contractual commitments.