Cyprus: pay tied to growth


The two main union confederations, SEK and PEO, have signed an agreement linking pay rises in state-owned companies to economic growth. The deal covers organisations, such as the state broadcasting company and electricity and telecoms bodies.


Unions have accepted that there should be no increase in respect of 2015 or 2016 and have agreed to limit increases in 2017 and 2018 to the growth in the Cypriot economy. The latest forecast from the European Commission is for 2.5% growth this year and 2.3% in 2018.