A sectoral collective agreement with a two-year duration is expected to be signed today between hoteliers and the Panhellenic Federation of Tourism and Catering, which will provide for salary increases of up to 10%.

Specifically, the sectoral contract includes:

1. A 5% increase retroactively from January 1, 2025.
2. A 3% increase from January 1, 2026.
3. Employer contributions of 2% to the newly established professional fund. If, for any reason, the fund is not established by the end of May 2026, the 2% will be added as a salary increase for hotel employees, according to the clause stipulated in the contract.

At the same time, the contract will also cover employees in hotel restaurant receptions, mini-market workers in hotels, maintenance personnel, and accounting department staff.

Additionally, employees have received assurances from the Ministry of Labor that with the implementation of the digital work card from March 1, 2025, in the tourism and catering sectors, the seven-day workweek will not be legitimized, and workers will receive 4 to 8 days off per month.

According to the president of the Federation of Tourism and Catering, Giorgos Chotzoglou, the agreement is positive, but he calls on the Ministry of Labor to establish a suspension of work contracts for hotel employees in Santorini and Amorgos, where hotels will operate at reduced capacity during the tourist season.

In fact, in a joint letter to Labor Minister Niki Kerameos, the General Confederation of Greek Workers (GSEE) and the Panhellenic Federation of Catering-Tourism Employees (POEET) request immediate measures to protect workers in Santorini and Amorgos due to the ongoing seismic activity in the area. This includes the suspension of work contracts and the provision of special-purpose compensation at a rate of at least 82% of the current minimum wage, with full coverage of social security contributions.

It should be noted that the Ministry of Labor has already passed legislation allowing for the suspension of employment contracts for the affected workers until March 3, 2025.

Full Details of the Letter

The intense seismic activity recorded in the Cyclades, particularly in the islands of Santorini and Amorgos, is naturally affecting both the smooth operation of tourism and catering businesses and the employment of workers in these sectors.

According to a recent announcement, the Ministry of Labor will soon submit a legislative provision to Parliament allowing private-sector businesses operating within the Municipality of Thira to suspend employee work contracts from February 1 to March 3, 2025. In such cases, employees will receive a monthly compensation of 534.00 euros or a proportional amount based on the total days of suspension, while any dismissals will be deemed invalid.

We emphasize that protective measures should extend beyond Santorini to include at least Amorgos, which is also severely affected by seismic activity. It is essential to implement measures for both year-round and seasonal businesses (those operating up to 9 months per year). As is well known, seasonal businesses are required to rehire the same staff employed during the previous season, provided that the employees notify their employer in writing through their relevant union that they wish to work in the upcoming season.

The ongoing seismic activity is unfortunately expected to lead to cancellations and impact business occupancy, affecting both year-round and seasonal operations. Consequently, not all employees who have already declared their intention to work through their union will be able to be rehired. In such cases, the suspension of employment contracts should apply to those seasonal workers who, despite exercising their right to employment for the upcoming season, will not be absorbed. This measure will prevent employment contract terminations that would force a large number of workers out of the catering-tourism sector.

2. The special-purpose compensation announced for cases of work contract suspension amounts to 534.00 euros per month. This same amount was provided during the suspension of employment contracts due to COVID-19 in 2020-2021.

However, today, workers’ living conditions have significantly changed. The cost of living has eroded disposable income, and employees struggle to meet even basic needs for a decent standard of living.

For instance, in 2020, when the COVID-related suspension measure was in effect, the minimum wage was 650.00 euros. Today, it has risen to 830.00 euros per month. While the 534.00 euro special-purpose compensation in 2020 represented approximately 82% of the then-minimum wage, today, the same amount is less than 65% of the current minimum wage. If we also account for the seniority increments, which were reinstated by Law 5053/2023 as of January 1, 2024, the 534.00 euro compensation corresponds to an even smaller percentage of the minimum wage.

Given these facts, we believe it is imperative to set the special-purpose compensation at a rate of at least 82% of the current minimum wage, with full coverage of employees’ social security contributions.