The Government's decision to institutionalize the payment of a 13th salary for all employees in the hotel industry was announced on Tuesday by the Minister of Labor and Social Insurance, Yiannis Panayiotou, while also stating that amending regulations are being submitted to the House of Representatives today for implementation from August 2025.
In statements to CNA, Mr. Panayiotou said that "the institutionalization of the 13th salary will positively affect the 30% of employees in the sector who do not currently receive a 13th salary and amount to almost 10.000", out of the total of approximately 30.000 employees in the hotel industry. He noted that the majority of employees who will be affected by the institutionalization of the 13th salary will be local employees.
He also said that this development "is included in the mediation proposal of the Ministry of Labor and Social Insurance agreed upon by the social partners for the renewal of the Collective Agreement in the hotel industry."
The Minister of Labor thanked the trade unions and employer associations of the sector for their constructive contribution to the social dialogue, which, as he said, "led to the achievement of a mutually beneficial agreement, which is being implemented with positive results for everyone on both sides."
Specifically, Mr. Panayiotou said that according to the Hotel Employees' Terms of Service Amendment Regulations of 2025, approved by the Council of Ministers, it is provided for the granting of a 13th salary "to all employees in the hotel industry during the Christmas holidays and no later than December 20 of each year."
At the same time, he stated that in the case of employees with less than 12 months of service, a proportion of the salary will be given based on their service, while he clarified that "employees who stop working in a hotel unit where they completed at least one month of service will receive a proportion of the 13th salary for the period of their service."
"The Government implements a people-centered policy for the development of the economy and for the cohesion of society, prioritizing as a basic priority the improvement of wages and the improvement of labor benefits to upgrade the quality of life of citizens," he emphasized.
The Minister of Labor said that "the implementation of government policy during the first two years of governance has brought about concrete positive results in protecting low-wage workers and strengthening middle-class workers."
"We continue to methodically and effectively implement the government's plan for a fairer distribution of the economy's growth dividend, so that all citizens receive their fair share and our country's middle class expands," he emphasized.
Asked to state whether he expects the House to vote on the amending regulations before the summer holidays, Mr. Panagiotou told CNA that "the amending regulations will be submitted today to the House of Representatives and it is expected that in the near future it will be possible to discuss them in the competent House Committee, so that they can be brought to the Plenary for a vote, in the immediate future, so that they can be implemented according to the relevant planning."
Asked how many people currently receive a 13th salary and what the total number of employees in the hotel industry is, the Minister of Labor said that employees in the hotel industry who currently receive a 13th salary are approximately 70% and those who do not receive a 13th salary are limited to 30%, adding that the total number of employees in the sector is approximately 30.000.
"Through the institutionalization of the 13th salary, all employees in the hotel industry will be eligible for its payment," he noted.
When asked whether the 30% that will be positively affected concerns the domestic workforce, Mr. Panayiotou explained that "workers from third countries who work in Cyprus are employed based on the provisions of the collective agreement, based on the framework for the employment of third-country nationals."
He stated, however, that "a significant number of Cypriot workers are not employed under the terms of the contract" and added that "the majority of workers who will be affected by the institutionalization of the 13th salary will be local workers."
Source: KYPE
