The main objective of a minimum wage scheme is to ensure decent living conditions especially for low wage earners without generating economic distortions. Recent studies exhibit that the introduction of a minimum wage has various benefits, such as substantial reduction in wage inequality and social exclusion and reduced unemployment, especially amongst young people. As of January 1st 2023, statutory minimum wage will be in effect in Cyprus. It has been set at €885 upon recruitment and it rises to €940 after 6 months of continuous employment at the same employer. However, some parameters still need to be regulated for a smoother and more distinct system. For instance, the revision mechanism and the monitoring practices need to be specified as well as the hourly minimum wage needs to be defined. It is expected that the minimum wage introduction will have overall positive effects from a socioeconomic perspective.
