PASYDY dismisses concerns over public sector wage bill growth

The Pancyprian Public Servants Trade Union (PASYDY) has rejected claims that the state wage bill is spiraling out of control due to cost-of-living adjustments (COLA), salary increments, and general pay raises. The union stated that estimates included in the Ministry of Finance's circular are part of standard annual budgetary procedures and do not indicate a fiscal crisis. PASYDY emphasized that a permanent agreement regarding the gradual restoration of COLA was recently reached between social partners and the government to ensure industrial stability. This agreement includes specific safeguards to keep expenditures manageable. The mechanisms include activating COLA only when the previous year's inflation growth is positive and capping the annual cost-of-living allowance increase at 4%. The union maintains that the issue of COLA is resolved and fully manageable under these frameworks. PASYDY further noted that the Ministry of Finance considers long-term salary implications in all its future fiscal planning.