Raises in state salary system
The Economy Ministry is in a race against time for changes to the civil servants’ salary system to be confirmed in the next few weeks and the new provisions to be included in the first omnibus bill.
Given the fiscal space from the 2024 budget that will be allocated – 700 million euros will be given for the gross raises, while the net cost to the budget will be €500 million, as the state will collect more taxes and social security contributions – an effort will be made to satisfy two objectives at the same time.
First, to bring an increase in gross earnings for all public sector employees who are the only ones who have not yet seen their salaries change. And secondly, to make salaries more attractive for specific groups of staff who are instrumental to the implementation of government policy.
The government program foresees that the fiscal cost for the salary system will remain stable at €500 million for the entire four years. This means the changes to be decided will be kept in force without additional interventions for the four-year period. Any additional raises in the public sector will come from salary bracket shifts.
The prime minister is expected to give the final picture of the new salary system in the public sector at the presentation of the government’s policy.
