[Cyprus] Minimum wage cannot be introduced under current circumstances

On December 8, MPs heard that Cyprus cannot introduce a minimum wage across the board during the COVID-19 pandemic and resulting uncertainty in the labour market. At the same time, the House labour committee was reportedly informed by the state Legal Service that three related proposals tabled by parties were unconstitutional, Cyprus Mail reports. 

The proposals were submitted by the Citizens’ Alliance, Elam and the Green party.

Andreas Zahariades - labour ministry permanent secretary - said the ministry was ready to submit a proposal early in 2020 and had intended for it to be approved by the cabinet in March.

But the impact of the coronavirus crisis means matters have taken a different turn with the job market is markedly different from the previous year.

“The position was and still is to promote a national minimum wage,” Mr Zahariades said. “But as the minister also said, the job market conditions are not favourable to push this initiative at this moment.”

The ministry permanent secretary said the objective at present is to preserve jobs amid a pandemic and not move on to the next stage. He suggested that the current climate would not be conducive for talks.

“There is insecurity, we see the concern over what the pandemic would bring as regards the job market, so we think the climate is ever-changing and it does not help any dialogue under the current circumstances.”

Giorgos Lillikas - chairman of the Citizens’ Alliance - said his proposal could be approved today because it provides for establishing a national minimum wage that could be set afterwards, without any time frames.

“It is effectively a framework law that guarantees a national minimum wage,” he said.

Andreas Fakontis - committee chairman Akel MP - said the EU was preparing a directive on the issue which would effectively give member states the authority to decide, under certain conditions. Mr Fakontis said only six EU states have no minimum wage. This includes Cyprus, which uses decrees to set one in nine professions.

On December 8, MPs heard that Cyprus cannot introduce a minimum wage across the board during the COVID-19 pandemic and resulting uncertainty in the labour market. At the same time, the House labour committee was reportedly informed by the state Legal Service that three related proposals tabled by parties were unconstitutional, Cyprus Mail reports. 

The proposals were submitted by the Citizens’ Alliance, Elam and the Green party.

Andreas Zahariades - labour ministry permanent secretary - said the ministry was ready to submit a proposal early in 2020 and had intended for it to be approved by the cabinet in March.

But the impact of the coronavirus crisis means matters have taken a different turn with the job market is markedly different from the previous year.

“The position was and still is to promote a national minimum wage,” Mr Zahariades said. “But as the minister also said, the job market conditions are not favourable to push this initiative at this moment.”

The ministry permanent secretary said the objective at present is to preserve jobs amid a pandemic and not move on to the next stage. He suggested that the current climate would not be conducive for talks.

“There is insecurity, we see the concern over what the pandemic would bring as regards the job market, so we think the climate is ever-changing and it does not help any dialogue under the current circumstances.”

Giorgos Lillikas - chairman of the Citizens’ Alliance - said his proposal could be approved today because it provides for establishing a national minimum wage that could be set afterwards, without any time frames.

“It is effectively a framework law that guarantees a national minimum wage,” he said.

Andreas Fakontis - committee chairman Akel MP - said the EU was preparing a directive on the issue which would effectively give member states the authority to decide, under certain conditions. Mr Fakontis said only six EU states have no minimum wage. This includes Cyprus, which uses decrees to set one in nine professions.