Council of State judges say scrapping of bonus pay unconstitutional


A section of the Council of State has issued a decision in favor of public sector employees who challenged the constitutionality of an austerity measure introduced in 2012 that scrapped a special bonus paid out on the Christmas, Easter and summer holidays.

The ruling was based on a legal precedent set by the country’s Supreme Court in 2015. However, due to the significance of the case – as the decision could have major fiscal implications – judges deferred the ruling to the Plenary of the Council of State, which will have the final say.

The ruling will determine, first, whether current state employees and pensioners will be entitled to retroactive payments and, second, who exactly will benefit from the measure – everyone or just those who went to court.