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COLA set at 1.25% for 2025, Ministry of Finance announces

07:37 - 03 January 2025

Economy Reporter

Salaries for those receiving the Cost of Living Allowance (COLA) will increase by 1.25% starting from 1 January.

The increase is calculated based on 66.7% of the Consumer Price Index (CPI) from the previous year, provided that there is positive growth in the second and third quarters of the preceding year.

Α circular from the Ministry of Finance says that the Consumer Price Index for 2024, excluding the impact of increased consumption taxes, stood at 113.46 points, compared to 111.38 points in the previous year (with 2015 as the base year), representing an increase of 1.87%.

As the growth rate in real terms, adjusted for seasonal fluctuations, was positive in the second and third quarters of 2024 at approximately 3.5% and 3.8%, according to the Ministry of Finance's circular, from 1 January, 2025, and for a period of twelve months, a 1.25% increase will be incorporated into COLA. This will adjust it from 355.29% to 360.98% of the basic salaries.

(Source: CNA)

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