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According to the results of the Structure of Earnings Survey 2018, the total monthly earnings of full-time employees averaged at €1.837 (males €1.977 and females €1.676). In comparison with the mean monthly earnings recorded in 2014, there was an increase of 5,1% (males 5,2% and females 5,0%). The level of monthly earnings of employees for the year 2018 (€1.837) is still lower than that observed in year 2010 (€1.890). (Graph)

The mean total annual earnings for full-time employees came up to €23.791 on average (males €25.618 and females €21.706). In comparison with the mean annual earnings recorded in 2014, there was an increase of 5,2% (males 5,1% and females 5,3%). The level of annual earnings of employees for the year 2018 (€23.791) is still lower than that observed in year 2010 (€24.530). (Graph)

According to the results of the survey, the occupational category with the highest monthly and annual earnings for full-time employees, was category “1 – Managers”, with a monthly average of €5.697 and an annual average of €76.919. (Table 1)

The categories where the lowest mean monthly and annual earnings for full-time employees were observed, were: a) category “9 - Elementary occupations”, with an average of €1.146 and €14.682 respectively and b) category “6 - Skilled agricultural, forestry and fishery workers”, with an average of €1.177 and €14.713 respectively (very small sample of employees in this category for the specific survey). (Table 1)

During 2018, the Economic Activity Section with the highest monthly and annual earnings for full-time employees was section “B - Mining and Quarrying” (a section with a small number of employees), with mean monthly earnings €3.225 and mean annual earnings €45.247. Section “K - Financial and Insurance Activities” follows, with €3.017 and €39.886 respectively. (Table 2)

The lowest mean monthly and annual earnings for full-time employees were observed in section “I - Accommodation and Food Service Activities”, with a monthly average of €1.229 and an annual average of €15.940. In section “S - Other Service Activities”, the second lowest level was observed, with a monthly average of €1.285 and a yearly average of €16.096. (Table 2)

During 2018, the mean hourly earnings of employees were €10,78 for full-time employees and €8,08 for part-time employees. Full-time male employees received €11,33 while women received €10,15, on average. Part-time male employees received €7,99 and females €8,16. In comparison with 2014, an increase of 3,1% was recorded in the hourly earnings of full-time employees. The corresponding increase for part-time employees was 14,5%. (Table 3)

The increase in the hourly earnings of part-time employees is mainly attributed to the large increase in the number of employees in the labour market overall and specifically in occupational categories such as, “Professionals” and “Technicians and associate professionals”.

METHODOLOGICAL INFORMATION 

General Information

The Structure of Earnings Survey (SES) 2018 is part of a series of four-yearly surveys, conducted under the Council Regulation 530/1999 and the Commission Regulation 1916/2000 as amended by Commission Regulation 1738/2005 of the European Union.

The aim of this survey is to provide accurate and harmonised data between EU Member States and Candidate Countries for policy-making and research purposes. The 2018 SES gives detailed and comparable information on relationships between the level of remuneration, individual characteristics of employees (sex, age, occupation, length of service, highest educational level attained, etc.) and their employer (economic activity, size, etc.).

In Cyprus, the survey was conducted for the fifth time during 2019, with 2018 being the reference year.

Data Coverage

The SES 2018 covered enterprises in all economic activities, excluding Agriculture, Fishing, Activities of Private Households and Extra-territorial Organisations. All enterprises covered had one or more employees.

The SES collected data both for the reference month of October 2018 (monthly data) and the reference year 2018 (annual data). All data collected referred to employees who worked in the enterprise during October 2018.

The data collection was conducted by means of personal interviews at the enterprises.

Classification Systems

Statistical Codes of Economic Activities, 2008: This classification system refers to the statistical codes and the classification of economic activities in Cyprus on the basis of the “Statistical Classification of Economic Activities in the European Community (NACE Rev.2)”.

International Standard Classification of Occupations, 2008: The International Standard Classification of Occupations, 2008 (ISCO-08) was developed by the Bureau of Statistics of the International Labour Office and presents the statistical codes of the various occupations. This classification system is a tool for organising jobs into a clearly defined set of groups according to the tasks and duties undertaken in the job. ISCO-08 is intended to facilitate international communication on the subject of occupations and occupational groups.

Definitions

Mean Hourly Earnings of Employees: The average gross earnings per hour, paid to the employee (full-timer or part-timer) during the reference month of October 2018. This is derived from total gross earnings for the reference month divided by the number of hours paid during the same period.

Mean Total Monthly Earnings of Full-time Employees: This variable covers gross remuneration paid in cash to full-time employees during the reference month of October 2018, before any tax deductions and social security contributions. In cases where the employees were paid a reduced salary due to absence, the amount was adjusted accordingly in order to represent a full month of regular work of the employee. In the broad public sector, earnings reductions have been deducted from monthly earnings.

Total monthly earnings include all payments relating to the month of October 2018 (even if paid outside the representative month), payments for overtime, shift work premium, allowances for team work, night work, weekend work, commissions, payments for periods of absence and work stoppage paid for entirely by the employer, family allowances and other gratuities in cash fixed by collective agreements or voluntarily agreed, payments to employees’ savings schemes and in general, bonuses and allowances paid regularly in each pay period even if the amount varies monthly.

Total monthly earnings exclude payments made during the reference month of October 2018, but relating to other periods, payments for periods of absence paid by the employer at a reduced rate, payments in kind, reimbursements or payments for travel, subsistence, etc., expenses incurred in carrying out the employers business, allowances for work clothes or tools, statutory family allowances and in general, periodic bonuses and gratuities not paid regularly at each pay date.

Mean Total Annual Earnings of Full-time Employees: This variable covers gross remuneration in cash and in kind paid to full-time employees during the reference year of 2018, before any tax deductions and social security contributions. In cases where the employees were not paid for a full year due to absence, the amount was adjusted accordingly in order to represent a full year of regular work of the employee. In the broad public sector, earnings reductions have been deducted from annual earnings.

Total annual earnings include all payments relating to the reference year 2018. This covers all regular payments that are paid in every pay period, payments for overtime, shift work premium, allowances for team work, night work, weekend work, commissions, bonuses and allowances paid regularly in each pay period even if the amount varies monthly, payments for periods of absence and work stoppage paid for entirely by the employer, family allowances and other gratuities in cash fixed by collective agreements or voluntarily agreed, payments to employees’ savings scheme.

Furthermore, total annual earnings also include irregular bonuses and allowances that are not paid in each pay period (13th salary, 14th salary, end year bonuses, productivity bonuses, holiday bonuses, retirement bonuses, etc.) as well as payments in kind during the reference year, where the value of all goods and services made available to employees through the enterprise is taken into account (company products, company cars and mobile phones, etc.).

For more information:

Statistical Service (CYSTAT) Website, subtheme Labour Cost and Earnings

Contact

Marilena Loukaidou: Tel:+35722602244, Email: mloukaidou@cystat.mof.gov.cy.

Eleni Christodoulidou: Tel:+35722602142, Email: echristodoulidou@cystat.mof.gov.cy                                                                                                

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