2023-10-05 07:00:00
This Tuesday, the Council of Ministers approved an agreement to raise the salary of all public employees up to a 0.5% additional payroll for October, with retroactive effects from Januaryunder an agreement signed with CCOO and UGT that linked this increase to the evolution of the estimated annual variation rate of the Harmonized Consumer Price Index (IPCA) for September, which stood at 3.2%.
In the press conference after the Council of Ministers, the acting head of the Treasury and Public Service, María Jesús Montero, encrypted the global cost of this measure in all public administrations in more than 700 million eurosof which a “small part” corresponds to the General State Administration (AGE), for which an amount had already been reserved in the General State Budgets of 2023 in anticipation of the IPCA being higher than estimated.
Specifically, as explained by the Treasury in a press release, the investment to apply this increase will be 791 million euros, with a average increase of 180 euros in the annual payroll of public employees.
The climb will benefit nearly 3.5 million people who carry out their work for Public Administrations. The majority of them work for the autonomous communities, which employ almost 60% of all personnel who work for the State. These are followed by number of personnel by local entities and the Central Administration.
Agreed increases
Montero recalled that this additional increase of up to 0.5% is retroactive from January and is the result of the Framework Agreement for a 21st Century Administration signed by the CCOO and UGT unions with the Government at the General Table of public administrations.
As agreed, the payrolls of public employees were raised by a fixed 2.5% in 2023, with the possibility of two variable increases, of 0.5% each. The first would apply if the harmonized CPI for 2022 and 2023 – until September, according to the advance data – exceeded 6% and the second variable of 0.5% would operate if the nominal GDP in 2023 exceeded that forecast by the Government (2, 1%).
The first variable increase, linked to the IPCA, has already been fulfilled, so the Government has proceeded to approve the agreement by which it will be applied to the payrolls of all public employees.
Montero explained that this additional 0.5% increase will be automatic for those who are civil servants. “In public companies and the public sector, this increase also operates, but it is also subject to the agreement and, therefore, to the union dialogue with the legitimate representation that each instrumental entity has, but this increase appeals to the entire group of employees, officials local and autonomous communities,” stressed the acting minister.
Another possible additional increase of 0.5%
The head of the Treasury has highlighted that with this increase the agreement reached with the unions is complied withwhile reiterating the Government’s commitment to comply with the other additional increase of 0.5% linked to GDP.
“That will be another variable that can be analyzed in the month of February and that will complete that 3.5% increase for more than three and a half million public employees, which will be completed over the coming months, complying with the agreement that was carried out with all union organizations,” he noted.
Specifically, the agreement contemplates that, in 2023, if the increase in nominal GDP is equal to or greater than that estimated in the macroeconomic table that accompanies the General State Budgets (2.1%), A further increase of 0.5% will be applied.
This possible complementary increase in 2023, of a consolidated nature, would have effect from January 1, 2023 and it is very likely that it will occur, since the Government itself has announced that the GDP will grow above the official estimate (2.1%), as corroborated by national and international organizations that have revised their estimates upwards, in the majority of cases above the expected 2.1%.
Related news
The path of remuneration improvements will culminate in 2024for which the agreement signed with the unions contemplates a fixed 2% remuneration update and an optional 0.5% that will be linked to the IPCA, as established for 2023.
By then, the Treasury highlights, the total increase in the period 2022-2024 will have exceeded 8%, and could reach 9.5% in those years, depending on the variables contemplated in the review clauses. In real terms, the revaluation can reach 9.8%, since the salary increase for each year is consolidated.
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