Nicosia: The government sent the message that economic growth is beginning to translate into tangible gains for citizens' incomes, with Government Spokesperson Konstantinos Letymbiotis stressing on Thursday that recent data on wages point to stronger purchasing power and a gradual spread of benefits across society.
According to Cyprus News Agency, the Cyprus Statistical Service for the fourth quarter of 2025 reported that average monthly earnings rose by 4.9%, while median earnings increased by 4.6%, under conditions of near-zero inflation. 'This means a real strengthening of purchasing power and shows that growth is gradually beginning to reach broader segments of society,' Letymbiotis told reporters during a briefing at the Presidential Palace.
He noted that from the outset the government has pursued a responsible and effective economic policy with a clear focus on fiscal stability, strong growth, job creation, and the gradual strengthening of household incomes. 'The results of this policy are now reflected across all key indicators. Economic progress is ultimately measured by its impact on society and the real economy. Positive indicators matter when they have a social footprint,' he said.
Letymbiotis also pointed out that, compared to the fourth quarter of 2024, average monthly earnings increased by 4.2% for men and 4.5% for women, indicating that improvements are being recorded across the labour market, including in female employment. He added that wage increases gain further significance from the beginning of 2026, as tax reform reduces the tax burden and leaves more money in the hands of workers and families.
At the same time, he acknowledged that pressures on households persist, particularly in a volatile geopolitical environment affecting energy prices and fueling inflationary pressures internationally. For this reason, he said, efforts are continuing through policies aimed at strengthening wage adequacy and supporting households, including raising the minimum wage, the cost-of-living allowance agreement, the tax reform implemented from early 2026, and a forthcoming pension reform.