Ibiza and Formentera hospitality wage increase – A breakthrough agreement has been reached in Ibiza and Formentera to increase hospitality wages by 13.5% over the next three years. The deal between unions and hotel employers has officially cancelled a strike that could have disrupted tourism during the crucial summer season.

Wages will rise until 2027

The salary hike will unfold in three stages: 6% in 2025, 4% in 2026, and 3.5% in 2027. The Federation of Hotel Businesses of Ibiza and Formentera (Fehif) has joined the deal alongside Mallorca and Menorca’s hotel federations.

This Ibiza and Formentera hospitality wage increase will impact thousands of workers in the Balearic Islands’ second and third most visited destinations. It follows growing concerns over stagnant wages and workload demands during record-breaking tourist years.

Strike cancelled just days before peak season

The union UGT had called for a five-day strike in July. It also threatened action at key points including the Ibiza Airport. However, following last-minute talks, the parties reached common ground. Union leaders and business representatives held a five-hour negotiation session over the weekend, resulting in the wage increase agreement and the withdrawal of plans to reduce weekly hours from 37.5 to 35.

José García Relucio of UGT celebrated the agreement, calling it a “responsible outcome” for both the workforce and the region’s tourism industry. The union has now desisted from calls to strike, bringing relief to local businesses and holidaymakers.

Beyond wages: modernisation and flexibility

The agreement also introduces changes aimed at improving labour conditions. These include better scheduling practices, more structured rest periods, and flexible hiring processes. The final version of the collective agreement will be signed and published soon in the Boletín Oficial de Baleares.

Relucio urged hotels in Ibiza and Formentera not to wait for official publication and to apply the salary adjustments immediately, backdated from April.

This Ibiza and Formentera hospitality wage increase signals renewed collaboration between unions and employers, showing that dialogue can resolve even the most heated disputes, just in time for summer.