The Peer Review was be hosted by the Cypriot Ministry of Labour, Welfare and Social Insurance and focused on the implementation and reform of minimum wage systems.

There are many different approaches to minimum wages in Europe, reflecting the needs and choices of individual countries. This Peer Review provided an opportunity for countries to exchange experiences and best practices in relation to different minimum wage systems.

For the host country, Cyprus, it was also envisaged that it would provide key inputs to the strategic policy direction of the Ministry of Labour, Welfare and Social Insurance with respect to the way the national minimum wage will be introduced, and in turn would form the basis of formal consultation with social partners. Currently, the Government sets minimum wages for a relatively small share of salaried employees, who belong to certain occupations and are not covered by collective bargaining agreements. However, as the Cypriot economy continues to grow significantly, and the unemployment rate continues its strong downward trend, the Government is planning to introduce a statutory minimum wage to increase the coverage of protected workers. The above reform also aims to improve the effectiveness of minimum wages in the framework of the collective bargaining system, the national social protection system, as well as the national social and economic circumstances.

During the Peer Review, the following topics were discussed:

• The advantages and disadvantages of having a simple minimum wage system (i.e. one minimum wage rate applied to all employees in the country) and a more complex minimum wage system (i.e. different minimum wage rates for different groups (e.g., migrant workers, young people, etc), sectors of activity, occupations and/ or geographical regions).
• Setting and adjusting the minimum wage level from a social and economic perspective.
• The flexibility of the minimum wage in times of crisis.
• The interaction between the minimum wage and the collective bargaining system, as well as the social protection benefit system.
• Current challenges and developments in the area of minimum wages, especially with respect to the above aspects.
• Economic, employment and social impact of minimum wages.