ECONOMY

Tsakalotos rejects return of bonuses for civil servants

tsakalotos-rejects-return-of-bonuses-for-civil-servants

Finance Minister Euclid Tsakalotos on Tuesday did not rule out the retroactive payment of holiday bonuses to civil servants and pensioners, provided the fiscal targets are not affected and the Council of State rules in their favor. What he did rule out during his meeting with the leadership of the Civil Servants Union (ADEDY) was the permanent restoration of the bonuses and benefits that were abolished in 2013.

According to ADEDY officials, at Tuesday’s meeting, Tsakalotos said the so-called 13th and 14th salaries will not be paid out through a government decision. However, he did pledge that if the plenary of the CoS agrees with the verdict of the constitutional court’s Sixth Section that the cuts contravened the Constitution, then the government will examine the issue.

Tsakalotos revealed that the retroactive payments have been discussed with the country’s creditors, and if they do not cause problems with the fiscal targets they will be made in installments. Nevertheless, the permanent restoration of the bonuses would require structural changes because the budget would definitely be affected. ADEDY officials explained that Tsakalotos implied offsetting measures would be needed for the bonuses to return.