Cyprus records 3.7 percent increase in hourly labour costs for Q1 2026

Hourly labour costs in Cyprus rose by 3.7% in the first quarter of 2026 compared to the same period in 2025, according to preliminary data from the Statistical Service of Cyprus and Eurostat. This growth is driven by a 3.8% increase in wages and salaries, alongside a 3.3% rise in non-wage costs, which include social insurance contributions and taxes. Seasonally adjusted figures show a 1.1% quarterly increase in total labour costs. The growth rate in Cyprus exceeded the euro area average of 3.2% and was slightly higher than the EU average of 3.6%. Within the Cypriot business economy, total hourly labour costs and wages both rose by 4.7%, whereas the non-business sector recorded a slower growth rate of 1%. The labour cost index (2020=100) reached 119.80 unadjusted and 128.06 seasonally adjusted. Authorities noted that these preliminary figures are subject to future revisions.