Labour market trends show wage shifts and increased enforcement in Greece and Cyprus

Economic and labour developments in Greece and Cyprus show shifting trends in wages and regulation. In the Eurozone, wage growth slowed to 2.44% in the second quarter, down from 2.56% in the first quarter, potentially reducing cost-push inflation pressures. Meanwhile, in Greece, the Ministry of Labour is considering ending temporary exemptions for the digital work card, specifically targeting the tourism and catering sectors to eliminate loopholes caused by differing business activity codes (KAD).

Labour enforcement in Greece has intensified, with the Independent Labour Inspection Authority conducting over 41,000 inspections in the first half of 2026, resulting in 8,690 sanctions and approximately 25.5 million euros in fines. Additionally, Greek economic planning for 2027 includes measures to increase the minimum wage toward 1,000 euros and provide tax relief for families.

In Cyprus, Eurostat data indicates that hourly labour costs rose by 3.7% in the first quarter of 2026, slightly above the EU average. This increase reflects rising compensation pressures, impacting business operational costs in major hubs like Limassol.