Civil Servant Salary Increase: 11% Rise Agreed Until 2028

Spanish Government Reaches Deal with Unions for 11% Public Sector Wage Increase through 2028

A landmark agreement between the Spanish government and major unions UGT and CSIF will see public sector workers receive an 11% wage increase over the next four years,resolving a contentious negotiation that had stalled over inflation concerns.

The agreement, expected too be formalized this Thursday, marks a meaningful step towards stabilizing labor relations within the Spanish public administration.The primary sticking point in negotiations had been the government’s initial cap of 4% on cumulative wage increases for 2025 and 2026, a limit unions feared would erode purchasing power. This impasse, which began on monday, was ultimately overcome with the introduction of a variable 0.5% increase, payable next year if inflation reaches or exceeds 1.5%, as reported by CSIF.

Together,technicians from the Treasury are preparing to strike,demanding increased resources to combat tax crimes.

The deal has already secured the approval of UGT, ratified by its Federal Council last Friday, and CSIF. However, CCOO has opted to remain outside the agreement.

Did you know? – Spain’s public sector employs roughly 3.5 million people, making this wage agreement a significant economic event. The agreement impacts a large portion of the Spanish workforce.

Under the terms of the agreement, the country’s 3.5 million public employees will see a 2.5% wage increase,retroactive to 2025,and a further 1.5% increase in 2026. This 1.5% increase is contingent on a potential additional 0.5% adjustment based on the Consumer Price Index (IPC) for the coming year, which will be applied retroactively in the first quarter of 2027. Current inflation estimates for this year range between 2.7% and 2.9%, with the Bank of Spain forecasting around 2% for the next year.

The remaining 6.5% of the overall 11% increase will be distributed as a 4.5% increase in 2027 and a 2% increase in 2028. Shoudl the inflation variable not be triggered in 2026 – meaning the IPC remains below 1.5% – the wage increase for 2027 will be adjusted to 5%.

The Ministry has committed to bringing a Royal Decree to the Council of Ministers to facilitate the full retroactive payment of the 2.5% increase for 2025 throughout December.

Pro tip: – Public sector wage negotiations often hinge on inflation forecasts. Unions aim to secure increases that maintain or improve real wages amid rising costs.

CSIF has hailed the agreement as “the best possible in the current political circumstances,” also celebrating improvements in areas such as permits, work-life balance, internal promotion, merit-based competitions, and mobility. The agreement also addresses streamlining selective processes, eliminating the replacement rate, adapting job classifications to reflect actual functions, and enhancing retirement benefits, as well as unlocking the 35-hour workweek and regulating remote work within the General State Administration.

The wage increase is part of broader negotiations for a new multi-year agreement extending to 2028,which officially began on November 5th. In recent weeks, the Ministry has engaged with unions on employment and working conditions, finding common ground, while discussions on remuneration began last Wednesday with an initial offer of a 10% increase over four years, including 2025.

following the initial offer, the government increased the total amount to

Reader question: – Do you think this agreement will set a precedent for wage negotiations in the private sector? What impact might this have on Spain’s economy?

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