Hourly labor costs in Cyprus rose by 3.7 percent in the first quarter of 2026

Preliminary data from the Statistical Service of Cyprus indicates that hourly labor costs increased by 3.7 percent year-on-year in the first quarter of 2026. This growth consists of a 3.8 percent rise in wages and a 3.3 percent increase in non-wage costs. The figure represents an acceleration compared to the fourth quarter of 2025, when the annual increase was 2.4 percent, though it remains below the 4.3 percent recorded in the first quarter of 2025. In the European Union, the average hourly labor cost rose by 3.6 percent, while the Eurozone saw an increase of 3.2 percent. Seasonally adjusted data for Cyprus shows a 1.1 percent increase in total labor costs compared to the final quarter of 2025, with non-wage costs rising by 1.5 percent. The index for total labor costs in Cyprus reached 119.80 points unadjusted and 128.06 points seasonally adjusted (base 2020=100). Among EU members, the highest increases were reported in Hungary (16.4 percent), Bulgaria (13.2 percent), and Croatia (9.2 percent), while Malta, France, Denmark, and Latvia recorded the lowest growth.