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16 June, 2024
 
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State employees brace for 25-30M euro salary squeeze

No agreement spells financial strain for public sector

Panayiotis Rougalas

Panayiotis Rougalas

The agreement signed with unions PASYDYS and SEK is set to bring an annual cost of 25-30 million euros, impacting state employees and those in the wider public sector.

This includes local authorities, falling under wage scales A2, A5, and A7(ii). Approximately 9 thousand permanent or even semi-permanent employees in these categories are expected to benefit.

The Ministry of Finance highlights that the agreement aims to review and streamline the entire state wage bill on a study basis. The remuneration and advancement of employees in the specified category are emphasized, benefiting all without exception.

Key provisions involve advancing within combined scales and transitioning to A7(ii) for permanent employees with 18 years of service in the same position within KL. A2, A5, and A7(ii). However, the PEO did not entirely agree with the final draft, particularly regarding the exclusion of service on the A1-2-5 scale in the accumulated 18 years of service.

In an attempt to address inelastic spending, Finance Minister Makis Thunderbolt disclosed plans to present necessary positions to the Council of Ministers for approval, aiming to rationalize the state wage bill based on international and European standards.

The government is taking steps to curb the continuous geometric growth of the state wage bill, with an emphasis on not approving vacant posts during budget preparation.

Despite these efforts, there seems to be a potential conflict between the decisions made on Tuesday, December 12, 2023, and the broader approach outlined by the Finance Minister to address the state's spending challenges.

[This article was translated from its Greek original]

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