Euro Area Wage Growth Stays Steady Amid Cyprus' Rising Earnings
The European Central Bank (ECB) released its latest wage tracker, showing that negotiated wage pressures across the euro area remain stable through 2026 and into early 2027. The report found that collective bargaining agreements signed up to July 2026 resulted in a 2.3% increase in wages for 2026, rising slightly to 2.7% in the first quarter of 2027.
The ECB's wage tracker smooths one-off payments such as inflation compensation and bonuses over a 12-month period. The report showed that this smoothed indicator averaged 1.8% in the first quarter of 2026, 2.1% in the second quarter, and 2.6% in both the third and fourth quarters.
Separately, data from Cyprus showed workers' earnings continued to rise in the first quarter of the year. According to provisional figures released by Cystat, average gross monthly earnings increased to €2,601 in the first quarter of 2026, representing an annual increase of 3.7%.
However, the report noted that the average salary is not representative of what most employees actually earn, with a large share receiving considerably less than the national average. Cystat's figures showed that 40.9% of employees earned between €1,500 and €2,999 per month, while 33.9% earned less than €1,500.