Chronicle

2012-20132013EconomicsThe Minimum Wage Legislation in Cyprus and the effects of the recessionCyprus has a government-mandated minimum wage, and no worker in Cyprus can be paid less then thismandatory minimum rate of pay. Employers in Cyprus who fail to pay the Minimum Wage may be subjectto punishment by Cyprus's government.What is the Cyprus Minimum Wage?Cyprus's Minimum Wage is the lowest amount a worker can be legally paid for his work. Most countrieshave a nation-wide minimum wage that all workers must be paid.Cyprus' minimum wage rate is €743 per month for shop assistants, nurses' assistants, clerks, hairdressers,and nursery assistants. The minimum wage rises to €789 after six months' employment.CYPRUS UNEMPLOYMENT RATEThe unemployment rate in Cyprus increased to 14 percent in November of 2012 from 13.80 percent inOctober of 2012. The unemployment rate in Cyprus is reported by the Euro stat. Historically, from 2000until 2012, Cyprus Unemployment Rate averaged 5.42 Percent reaching an all time high of 14 Percent inNovember of 2012 and a record low of 3.40 Percent in March of 2002. In Cyprus, the unemployment ratemeasures the number of people actively looking for a job as a percentage of the labour force. The chartwith historical data for Unemployment Rate in Cyprus, shows the tremendous sustainable increase in thelevel of unemployment in the economy of Cyprus.The huge increase in unemployment within Cyprus has been due to many reasons. Generally,the contraction in the global economy manifested itself as huge distortions in the labourmarket in the forms of increasing unemployment and vulnerable employment rates andwidening social gaps in employment in most of the countries hit by the global financial crisis.Unemployment in Cyprus has been increasing continuously which has evidently caused othermacroeconomic problems. The economy of Cyprus has been suffering from rising inflation, making exportsless competitive in international markets, worsening the Balance of Payments position. The huge deficitcaused by the Government’s inconsiderate actions as well, has led to the need of the huge borrowing fromTroika.Concluding, the minimum wage in Cyprus is relatively low in comparison to other countries. However, dueto the current crisis the minimum wage might even become lower and unemployed people will have tosurvive based on the minimum wage!Louiza PilavakiAndreas OnisiforouNicolas Theodorides 5x67