Spain's Public Sector Workers to See Salary Increase Amid Inflation Concerns
The Spanish government plans a 0.5% salary hike for public workers in 2025, building on previous increases to address inflation.
In a move to offset the impact of inflation, over 2.7 million public sector workers in Spain are set to receive a 0.5% salary increase in 2025. According to the Ministry of Treasury, this adjustment is part of ongoing efforts to enhance public sector wages, which had already seen a 2% increase during the previous summer, resulting in a cumulative 2.5% rise by January 2025 compared to the same period in 2024.
The proposed 0.5% raise is pending approval by the Council of Ministers but is expected to have a retroactive effect covering all of 2024. This follows a series of wage adjustments over the past few years, aimed at aligning public sector pay with rising living costs.
The salaries of civil servants consist of a base salary, which varies depending on their functional group and academic qualifications, in addition to various allowances including destination, specific, productivity, bonuses, and seniority.
According to the State's General Budgets, the annual gross salary for each group is as follows:
- Subgroup A1: €32,804.62
- Subgroup A2: €30,747.56
- Group B: €29,123.40
- Subgroup C1: €27,237.64
- Subgroup C2: €25,488.02
- Professional Group: €25,337.94
With the increments, estimated gross salary increases for each group are projected to be approximately:
- Group A1: €150
- Group A2: €130
- Group B: €110
- Group C1: €95
- Group C2: €80
Beyond improving current earnings, this adjustment is part of a broader agreement between the government and major unions such as CC OO and UGT, which have called for the changes to be implemented swiftly.
The agreement, known as the "Framework Agreement for the Administration of the 21st Century," which was negotiated for the period of 2022-2024, ensures a cumulative wage revaluation of 9.5%.
Notably, salaries rose by 3.5% in both 2022 and 2023.
Inflationary adjustments were conditioned on harmonized consumer price index (HICP) changes exceeding the fixed wage increase across these years, which occurred as the combined inflation rates from 2022 to 2024 surpassed 8%, necessitating the additional 0.5% increase.
With the potential for these discussions to influence ongoing labor negotiations, particularly around rights and compensation, the evolution of public sector wages remains a focal point of economic discourse in Spain as 2025 approaches.
The proposed 0.5% raise is pending approval by the Council of Ministers but is expected to have a retroactive effect covering all of 2024. This follows a series of wage adjustments over the past few years, aimed at aligning public sector pay with rising living costs.
The salaries of civil servants consist of a base salary, which varies depending on their functional group and academic qualifications, in addition to various allowances including destination, specific, productivity, bonuses, and seniority.
According to the State's General Budgets, the annual gross salary for each group is as follows:
- Subgroup A1: €32,804.62
- Subgroup A2: €30,747.56
- Group B: €29,123.40
- Subgroup C1: €27,237.64
- Subgroup C2: €25,488.02
- Professional Group: €25,337.94
With the increments, estimated gross salary increases for each group are projected to be approximately:
- Group A1: €150
- Group A2: €130
- Group B: €110
- Group C1: €95
- Group C2: €80
Beyond improving current earnings, this adjustment is part of a broader agreement between the government and major unions such as CC OO and UGT, which have called for the changes to be implemented swiftly.
The agreement, known as the "Framework Agreement for the Administration of the 21st Century," which was negotiated for the period of 2022-2024, ensures a cumulative wage revaluation of 9.5%.
Notably, salaries rose by 3.5% in both 2022 and 2023.
Inflationary adjustments were conditioned on harmonized consumer price index (HICP) changes exceeding the fixed wage increase across these years, which occurred as the combined inflation rates from 2022 to 2024 surpassed 8%, necessitating the additional 0.5% increase.
With the potential for these discussions to influence ongoing labor negotiations, particularly around rights and compensation, the evolution of public sector wages remains a focal point of economic discourse in Spain as 2025 approaches.
Translation:
Translated by AI
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