Civil servants are bracing for a 10 percent slash to their income by the end of the year, or more than a month?s salary, through the cuts imposed by the new austerity measures.
Before even drafting the new system that brings down the basic salaries in the public sector to the levels of the private sector, the government is preparing new cuts to 21 main categories of allowances.
At the same time, a bill tabled in Parliament this week provides for the retrospective levy of 3 percent for unemployment among civil servants from January 1st, which effectively inflicts a 6 percent cut to public sector workers? salaries until the end of the year.
The government further intends to cut civil servants? performance incentives, as well as other allowances that operate as motivation for faster processing of their work or for a special occupation. The most likely scenario is for a 50 percent cut to those allowances.
Given all of the above, a civil servant with a monthly salary of 1,144 euros and an annual income of 22,500 will have to take 1,512 euros of cuts until Christmas, or 16 percent of their income in this period, through the change in the minimum taxable income, the new solidarity contribution, the 3 percent levy for unemployment and the cuts in allowances.