Raising the salaries of civil servants, a costly decision for public finances

by time news

2023-06-12 16:19:32

The French State and its administrations employ in all and for all some 5.7 million agents. Photo Feats / stock.adobe.com

DECRYPTION – The Minister of Public Function and Transformation is expected to announce an increase in the index point for civil servants on Monday afternoon. A decision with serious consequences.

How much will salaries increase in the civil service? While inflation is expected to be nearly 5% this year, the unions are meeting their supervisory minister, Stanislas Guerini, on Monday with the aim of upgrading the salary of all civil servants from July 1. The Minister must present them with the proposals of the state-employer to improve the purchasing power of its 5.7 million agents. Long-awaited, these are however likely to weigh heavily on the budget of the State as administrations.

The equation is indeed delicate for the government, which finds itself caught between, on the one hand, the claims of the agents, who point the finger at an inflation corrosive for their purchasing power, and on the other hand a debt abysmal public. The stakes are high and the room for maneuver limited: with 5.7 million agents, the public wage bill reached 327.7 billion euros last year, including employer contributions paid by the State, according to INSEE’s national accounts. Such an amount represents 21.4% of all public expenditure and 12.4% of GDP, againstnearly a quarter of public spending and 13% of national wealth” in 2014, according to the Court of Auditors.

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