The salary of the three million public employees will rise another 0.5% with retroactive effects to 2023 due to the improvement in GDP
In 2023, the Spanish economy is experiencing strong growth, which will have direct positive effects on the country’s three million public employees. As a result, the salaries of civil servants and staff are set to increase by an additional 0.5% with retroactive effects for the entire year. This increase translates to roughly 15 euros gross per month for the average public employee and will be reflected in their February payroll. The endorsement of this increase by the Council of Ministers is expected to happen in the coming week.
In 2022, a salary agreement was signed between UGT, CCOO, and the Government, which included a base salary increase of 2.5% for 2023. The agreement also included two additional clauses of 0.5% each based on the evolution of prices and the economy. The first clause was activated in September when it was confirmed that the accumulated inflation since 2022 surpassed the agreed-upon remuneration improvements. The second clause is now being activated due to the economic growth in 2023 surpassing the Government’s initial expectations.
According to the agreement, if the increase in nominal GDP meets or exceeds the Government’s estimate in the macroeconomic table accompanying the Budget law preparation, an additional 0.5% increase will be applied. The Government initially estimated a 6% increase in nominal GDP, but the final figure ended up being 8.6%, triggering the activation of the second clause.
With both clauses activated, public officials will receive a total raise of 3.5% in 2023, aligning their increases with those agreed upon by private company employees. This ensures that purchasing power is maintained overall.
For an average public employee with a monthly salary of 2,835 euros gross in 12 payments in 2022, the 0.5% increase amounts to approximately 15 euros per month. Taking into account the entire year, the 3.5% salary increase equates to about 99 euros per month for the average public salary. As this increase was not applied in 2023, public employees are likely to receive compensation in February for the 12 months lost in 2023 and January 2024, amounting to around 195 euros for an average sector salary.
The estimated cost of salary increases for the half a million employees in the state public sector in 2023 is 4,631 million euros. Looking ahead to 2024, the unions and the Government have agreed on a fixed salary improvement of 2.5% with an additional half-point clause linked to inflation. The State has allocated 4,746 million euros in its budget plan for these increases. The salary increases for the 2.5 million public employees in the regional administration must be ratified by the regional governments and corresponding local corporations.
Towards a new agreement
The current salary agreement between the unions and the Government will expire this year, meaning any future increases will be negotiated outside of the current framework. The unions have already initiated preliminary discussions with the Public Service department, which is now part of the Digital Transformation portfolio led by José Luis Escrivá, to begin negotiating a new agreement.
Last week, representatives of CSIF, CCOO, and UGT met with the Secretary of State for Public Function, Clara Mapelli, at the ministry headquarters to kickstart the negotiations. A meeting is scheduled with Minister Escrivá on Wednesday, where the unions will communicate their priorities.
While the negotiation process has just begun and specific figures have not yet been proposed, the unions plan to address other outstanding issues with the minister, such as partial retirement, the implementation of a 35-hour workweek, and workforce adaptation.