Social partners signed a new collective agreement for Cyprus’s hotel industry on Thursday in the presence of the Labour Minister, securing workplace stability in the sector until 2027.
The agreement, which follows the Cyprus Hotel Association’s (PASYXE) approval of the minister’s revised mediation proposal on December 3, includes several key provisions for improving working conditions in the industry.
The four-year deal, effective from January 1, 2024, includes a one-time payment of €240 for 2024 and total salary increases of 7% over three years from 2025 to 2027. It also formalizes the 13th salary in employee regulations.
Additional benefits include an increase in employer provident fund contributions to 5.25% from January 2026 and 5.50% from January 2027.
Workers will receive double pay for working on Christmas Day, New Year’s Day, and Easter Sunday. The split-shift allowance will be set at 20% of daily wages, capped at €155, and new salary scales will be introduced for newcomers to the industry.
The Labour Minister praised union and employer organizations for their contribution to reaching the agreement, saying it would “enable the unhindered realization of positive prospects for the hotel industry in coming years.”
