Regarding the above issue and following the circular of the Cyprus Employers and Industrialists Federation (OEB) dated January 8, 2026 (attached), it is reminded that businesses that adjust the salaries of employees based on the change in the Automatic Indexation (ATA) will have to pay from July 1, 2026:
a) an additional 0.02% on the total salaries in force on 31/12/2025 (a total of 0.12%)
or
b) an additional 0.03% on basic salaries (a total of 12.70%).
The relevant circular of the Ministry of Finance is attached.
For clarifications, you can contact the Department of Labor Relations & Social Policy of OEB, at tel. 22-643000.
CIRCULAR NO. 1780 – INDEXATION ALLOWANCE IAN2025 – IOYN2027
