The Official State Gazette (BOE) has definitively published this Thursday a resolution to certify the agreement adopted by the Council of Ministers this week to raise the salary of all public employees on the October payroll by up to an additional 0.5%. with retroactive effect from January 1 of this year. This salary increase, which will cost 791 million euros according to the calculations of the Ministry of Finance and Public Function, will mean an average increase in the annual payroll of public employees of 180 euros.
This additional increase up to a maximum of 0.5% responds to the agreement signed by the Government with CC OO and UGT that linked this salary increase to the evolution of the estimated annual variation rate of the Harmonized Consumer Price Index (IPCA) for September , which stood at 3.2%.
Said agreement with the unions established that the payrolls of public employees would increase in 2023 by a fixed 2.5%, with the possibility of two variable increases, of 0.5% each. The first would apply if the IPCA 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 planned by the Government (2 ,1%).
The resolution published this Thursday by the BOE indicates that the first variable increase must be executed as the 2022 IPCA and the advanced IPCA until September of this year have exceeded 6% of the sum of the fixed remuneration increases for 2022 and 2023.
This additional increase will benefit around 3.5 million people who work for Public Administrations. Most of them do so 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.
The Minister of Finance and Public Function, María Jesús Montero, explained last Tuesday that this maximum additional increase of 0.5% will be automatic for those employees with civil servant status. However, “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,” she clarified.
Montero also reiterated the Government’s commitment to comply with the other additional increase of 0.5% linked to GDP when the time comes. «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 in this regard.
Specifically, the agreement with the unions 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%), another change will be applied. a complementary increase of 0.5%.
This possible complementary increase for the year 2023, of a consolidated nature, would also have effects from January 1, 2023 and is very likely to occur, since the Government itself has anticipated 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 most cases above the expected 2.1%.
The path of salary improvements for public employees will culminate in 2024, for which the agreement signed with CCOO and UGT contemplates an update of salaries of 2% fixed and an optional 0.5% that will be linked to the IPCA, as established for 2023.
By then, according to Treasury calculations, 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.