State sector salaries to be slashed

Civil servants are bracing for significant cuts to their salaries until the end of the year, which in several cases could amount to a 10 percent slash.

A circular by the Finance Ministry suggests that the 2 percent levy on public sector salaries in favor of the unemployed has been imposed as of August, but will be retrospective from the start of the year. This means that gross salaries will now see cuts that correspond to 12 months within five months.

At the same time the productivity incentive (which ranges from 57 to 100 euros per month) is being cut by 50 percent, while 20 other allowances have been cut as of July by 10 to 30 percent. Those concern the special monthly benefits for local authority employees, coast guard and police officers, firefighters, military staff, diplomats, academics, musicians state doctors and several others.

Consequently, a civil servant with a gross monthly salary of 1,500 euros will now see it get slashed by between 100 and 150 euros, or 7 to 10 percent.