Nicosia: An agreement in principle over the Cost-of-living allowance (COLA) was signed Thursday at the Presidential Palace by the social partners and the Ministers of Labor and Social Insurance and Finance. President of the Republic, Nikos Christodoulides, stated that this is a permanent agreement on an issue that has been pending for 15 years, and added that COLA is being extended to 55,000 low-wage earners, through its interconnection with the minimum salary.
According to Cyprus News Agency, President Christodoulides emphasized that an important effort is completed and a permanent agreement on the COLA is being achieved through responsible and constructive dialogue. He mentioned that the Government received the COLA at 50%, amidst conditions of insecurity and risk of disruption of labor peace, but today the full restoration of COLA at 100% is being achieved, within 18 months, in a balanced and sustainable manner.
Based on the new framework, more than 55,000 beneficiaries are being included, essentially expanding the institution to the benefit of broader groups of employees. President Christodoulides noted that the positive course of the economy, reflected in continuous growth, the reduction of public debt and the achievement of full employment conditions, create the possibilities for the implementation of policies that improve the daily lives of citizens.
The President further explained that the responsible fiscal policy and the confidence regained both domestically and internationally, with successive upgrades by the Rating Agencies, allow the Government to proceed with determination in supporting workers, households, and businesses, without undermining the stability of the economy. The agreement gradually increases COLA payment rate to 100% and links COLA to the minimum wage, extending to almost 55,000 low-wage earners, with incentives and policies for expansion to more employees.
He pointed out that the agreement was not an easy task, noting that convergences and compromises between different aspirations and approaches between the employers and the trade unions were needed, making today’s outcome even more important. “It is a product of responsibility and mutual respect between the social partners and proves that through social dialogue, solutions can be achieved that serve the collective interest,” he stressed, thanking the Ministers of Labor and Social Security and Finance, as well as the social partners.
Concluding, President Christodoulides said that this effort was part of the government’s reform policy and effort for a fairer distribution of national income, for the further strengthening of the middle class and low-income earners, with the aim of achieving social cohesion.