The Cyprus Employers & Industrialists Federation (OEB) informs all members that adjust salaries based on the change in the Cost Of Living Allowance (COLA) for the following:
- The Consumer Price Index (excluding excise taxes) for the year 2019 recorded an increase of 0.46%.
- According to the transitional agreement on COLA, which was signed on the 28th July 2017 by the Social Partners, salaries are adjusted by 50% of the annual Index increase. Therefore, the increase for 2019 is 0.23%.
- As a result, COLA as of 01/01/2020 amounts to 1,27% on the new salaries, as these were formed through the above transitional arrangement.
Example:
| Salary before 01/01/2018 | COLA calculation for 2017 | COLA calculation
for 2018 |
COLA calculation
for 2019 |
| € 1500 | 1500 * 0,28% =
€ 4,20 |
1500 * (0,28 + 0,76)% = € 15,60 | 1500 * (0,28 + 0,76 + 0,23)% = € 19,05 |
| Salary as of 01/01/2018 | Salary as of 01/01/2019 | Salary as of
01/01/2020 |
|
| 1500 + 4,2 =
€ 1504,20 |
1500 + 15,60 =
€ 1515,60 |
1500 + 19,05 =
€ 1519,05 |
Please note that the above example does not account for any general increases and / or increments granted during the period 2018-2019.
For any clarifications, please contact OEB’s Industrial Relations & Social Policy Department at 22-665102.
