# Cyprus public sector labor and regulation developments

> Live situation record from CLSTR: https://clstr.news/situations/cyprus-public-sector-labor-and-regulation-developments
> Updated: 2026-10-07T14:39:15.000Z. Sources: 9. Developments: 3.

In the Republic of Cyprus, legislative and labor discussions regarding public sector employment and compensation are evolving.

Initial efforts focused on regulatory changes for approximately 400 contracted public sector employees. A proposed regulation, which moved to the General Assembly after passing the committee stage, aims to transition from annual to five-year contracts. This performance-based system would link continued employment to successful reviews and seeks to align leave entitlements with the Civil Servants Law.

Regarding hourly government personnel, negotiations initially stalled when trade unions described the Ministry of Finance’s proposal as “unsatisfactory,” noting it met less than 50% of their demand for an 8% increase over three years. Unions had warned of potential reaction measures to address cost-of-living challenges if discussions with the President did not yield progress.

Following an 18-month period of labor disputes, hourly government employees have now accepted a new Collective Bargaining Agreement. This decision, reached by a majority of union representatives during a national assembly, avoids planned strikes and industrial actions. The agreement introduces progressive, income-dependent wage increases starting in October, ensuring lower-income workers receive a higher percentage increase. Additionally, the deal establishes a medical-pharmaceutical fund to provide benefits not covered by the national health system.

## Timeline

### 2026-10-07: Cyprus hourly government staff accept new collective bargaining agreement

Hourly government employees in Cyprus have approved a new collective bargaining agreement, securing progressive wage increases and a new medical fund after 18 months of negotiations.

2 sources. https://clstr.news/cluster/cyprus-hourly-government-staff-accept-new-collective-bargaining-agreement

### 2026-09-25: Cyprus unions negotiate wage increases for hourly government staff

Cyprus unions met with Finance Minister Makis Keravnos regarding hourly government staff wages. While a proposal was presented, unions deemed it insufficient and are seeking further talks with the President.

3 sources. https://clstr.news/cluster/cyprus-unions-negotiate-wage-increases-for-hourly-government-staff

### 2026-09-03: Cyprus Turkish public sector contract regulations move to General Assembly

A new regulation in the Republic Assembly proposes moving contracted public employees to five-year performance-based contracts and increasing their leave entitlements.

3 sources. https://clstr.news/cluster/cyprus-turkish-public-sector-contract-regulations-move-to-general-assembly

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Cite as: Cyprus public sector labor and regulation developments. CLSTR, https://clstr.news/situations/cyprus-public-sector-labor-and-regulation-developments