Foreign students should be able to work in Cyprus, employers say

Severe labour shortages in Cyprus and the strategy for employing third-country nationals were key topics discussed during a meeting between the Cyprus Chamber of Commerce and Industry (CCCI) board and Labour Minister Yiannis Panayiotou on Tuesday.

The CCCI supported continuing the policy of granting work permits to third-country workers in sectors where there is proven lack of interest from Cypriots or Europeans.

The chamber emphasised its request to increase the accommodation cost deduction from workers’ wages from 10% to 25%, which it claims was a presidential commitment.

The business group also called for allowing all students to work without restrictions across all professions, similar to other European countries.

The CCCI expressed opposition to proposals for extending collective agreements to cover 80% of businesses.

The chamber argued this is not required by EU directives, which only encourage collective bargaining rather than mandate extension of collective agreements.

Discussions also covered the National Minimum Wage, with the CCCI opposing the setting of an hourly minimum wage.

The chamber advocated maintaining the current system where working hours are determined individually by businesses.

Board members presented the CCCI’s position on replacing the existing Cost of Living Allowance (COLA) calculation system with a modern pay increase mechanism.

The proposed system would consider factors such as productivity, work efficiency, and GDP growth at constant prices for businesses that provide such allowances.

In-Cyprus