Cyprus Times

Cost of Living Allowance Increase for Public Sector Employees in Cyprus

Published January 8, 2026, 14:12
Cost of Living Allowance Increase for Public Sector Employees in Cyprus

The Ministry of Finance has announced an adjustment to the cost of living allowance (ATA) for public sector employees. From January 1, 2026, the allowance will increase by 0.10% for the first six months of the year, and by 0.12% from July 2026 for the following twelve months. This increase is based on the positive performance of GDP and the index of price changes. Specifically, real GDP is expected to show a positive annual change of 3.5% for 2025, while the arithmetic average of the index for calculating ATA increased by 0.13%. The new cost of living allowance will be 361.44% and 361.53% respectively, with minimum thresholds of €13,803 and €13,807. For employees with the cost of living allowance already incorporated into their salary, the increase will be from 12.56% to 12.67% and from 12.67% to 12.70%, with minimum thresholds of €1,982 and €1,987.