Cyprus’ construction sector has clinched a landmark collective agreement that promises to significantly enhance the livelihoods of its approximately 40,000 workers.
The deal, finalised after protracted negotiations, introduces substantial wage hikes, restores previously slashed earnings and expands worker benefits.
Key provisions of the agreement, which extends until the end of 2027, include annual salary increases of €7, a gradual restoration of pay cuts implemented in 2013, and amplified gratuity payments. Furthermore, employers will contribute more generously to the provident fund.
Stelios Tsiapoutis, head of SEK’s construction workers’ union, hailed the agreement as a pivotal step forward for the industry.
He outlined plans to closely monitor wage levels and combat undeclared work, persistent issues within the sector.
The labour ministry expressed satisfaction with the outcome, emphasising the constructive role of social dialogue in achieving this positive agreement.
The new agreement includes the following provisions:
- Renewal of the collective agreement from 01/06/2022 until 31/12/2027
- Restoration of the remaining cuts from 13/06/2013 (€9 per week from 01/08/2024)
- Wage increases of €7 per week from 01/01/2025, €7 per week from 01/01/2026, and €7 per week from 01/01/2027
- Increase in the percentage of gratuity payment based on the wage from 8% to 9% from 01/07/2024, from 9% to 10% from 01/01/2026, and from 10% to 11% from 01/09/2027
Provident Fund
Employer contributions for existing and new members in the industry
- 3%
- 3.5% from 01/01/2025
- 4.0% from 01/01/2026
Employee contributions: 6%
The contribution of new members to the Provident Fund is as follows:
- 3% in the first year
- 3% in the second year
- 4% in the third year
- 5% in the fourth year
- 6% in the fifth year
