Government and PASYDY reach agreement on public service reform

On August 4, 2026, the leadership of the Pancyprian Public Servants' Trade Union (PASYDY), led by General Secretary Stratis Matthaiou, met with the President of the Republic of Cyprus, Nikos Christodoulides, at the Presidential Palace to address issues regarding public service reform. The meeting included the Ministers of Finance and Labor, along with other high-ranking officials, to discuss the ongoing administrative transition.

Key issues raised by the union included the revision of the interdepartmental promotion system, which the union claims has created significant obstacles rather than solving them. Other topics included the status of fixed-term and indefinite-term employees, professional advancement for lower-paid staff, digital transformation, and the improvement of public infrastructure. The union argued that the current examination process emphasizes rote learning rather than leadership capabilities.

As a result of the discussions, the government and PASYDY agreed to establish a joint committee consisting of representatives from the Ministry of Finance, the Public Service Commission, and the union. This committee is tasked with evaluating reform-related problems and presenting specific recommendations by the end of September 2026. The government has also issued instructions for relevant departments to seek solutions for the issues raised by the union, signaling a collaborative approach to modernizing the state administration.