Momentum Builds Around Collective Agreement Renewals in Cyprus

Momentum Builds Around Collective Agreement Renewals in Cyprus

Private Sector Wage Increases and Workplace Benefits Expand Amid Ongoing Dialogue on the Cost-of-Living Allowance (CoLA)

A wave of collective agreement renewals in Cyprus's private sector signals a period of labor peace—at least at the industry level. However, it remains uncertain whether broader industrial action can be avoided as social dialogue over the Cost-of-Living Allowance (CoLA/ATA) continues without resolution.

As Brief reports, recent agreements across four key sectors include a range of workplace improvements: wage increases, CoLA implementation, the establishment of provident funds, and the formalization of various allowances and benefits already recognized under labor law.

>>The Future of Minimum Wage and Collective Bargaining in Cyprus – A Challenging Equation<<

Higher Education Sector: First Collective Agreement at Frederick University

On April 11, Frederick University signed its first-ever collective agreement, covering both academic and administrative staff. The agreement sets out fundamental employment conditions, including salary terms, administrative working hours, teaching hours for academic and educational personnel, provisions for a provident fund, CoLA, and entitlements for annual, sick, maternity, and paternity leave. It also regulates overtime compensation and other employment matters.

The agreement was signed by University Council President Natasa Friderikou and union representatives Elissaios Michail (Secretary General, OYYK-SEK) and Andreas Kounnis (Secretary General, PASEY-PEO).

Both union leaders emphasized the importance of safeguarding labor rights through collective agreements in the higher education sector, which employs hundreds of highly qualified workers. They underlined the need for stable and dignified employment conditions in this field.

Intercity Bus Sector: Renewed Agreement for Cyprus Public Transport

On April 16, the Cyprus Intercity Bus Company signed the renewed collective labor agreement. The contract includes salary increases and a gradual reduction in weekly working hours to 38.

The agreement also introduces a new minimum starting salary for office and call center staff and establishes a program for permanent employment conversion. Workers' rights are further strengthened through provisions for breaks and allowances.

Starting April 1, 2026, a night work allowance of 5% per hour will be introduced for shifts starting after 8:00 p.m. until the end of night routes. Additionally, an agreement was reached to revise route schedules with long gaps to better utilize human resources.

The agreement was signed on behalf of OMEPEGE-SEK by Secretary General Charalambos Avgousti, who noted that this marks the conclusion of the renewal cycle for collective agreements in the passenger transport sector—securing labor peace and operational stability.

Pharmaceutical Sector: Delorbis Signs Two-Year Agreement

On April 7, a new collective agreement was signed for employees at Delorbis Pharmaceuticals Ltd. The agreement, reached between the company and unions OBIEK-SEK and SEVETTYK-PEO, secures several significant improvements for staff.

The two-year agreement (01/01/2025 – 31/12/2026) includes salary increases, an enhanced employer contribution to the Provident Fund, and increased support for the company’s Welfare Fund.

It was signed on behalf of OBIEK-SEK by Secretary General Giorgos Kasiouris. Union leaders described the renewal as a major development for employees at Delorbis—one of Cyprus’s newest and fastest-growing pharmaceutical companies. Since its inception, the firm has focused on scientific and technological excellence, aiming to establish a presence both locally and internationally.

Public Transport in Paphos: Three-Year Agreement with OSYPA

The renewal of the collective agreement for employees of Paphos Transport Organization (OSYPA) Ltd was finalized this April, following the acceptance of a mediation proposal from the Ministry of Labour’s Department of Labour Relations.

The new agreement spans three years (01/01/2024 – 31/12/2026) and includes key improvements such as:

  • Salary increases beyond pay scale increments

  • Higher employer contributions to the Provident Fund

  • Reduced working hours

  • Regulated driver breaks

The agreement was signed on behalf of SEK by Paphos District Secretary Petros Demosthenous.

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