Public sector employees and trade unions are demanding the abolition of the €300 cap on personal allowance, arguing that the provision included in the multi-bill of the Ministry of National Economy and Finance perpetuates salary inequalities in the public sector. The controversial regulation, included in Article 53 of the bill currently under public consultation, extends for the first time the granting of “personal allowance” to employees who were appointed or transferred after April 1, 2023, to 17 public services and agencies. However, it sets a maximum limit of €300 monthly, which has provoked strong reactions and demands for amendment of the provision before the bill’s passage.
Personal allowance: reactions over €300 cap in public sector
In dozens of comments posted on the consultation platform, it is acknowledged that the measure’s extension represents a positive development, as it addresses a long-standing demand from thousands of employees who were previously excluded from this particular salary regime. However, it is also noted that imposing a cap distorts the corrective nature of the regulation, as it continues to create different salary speeds between employees serving in the same services.
More specifically, the €300 ceiling deviates from previous legislative interventions, such as Article 45 of Law 4569/2018 and Article 64 of Law 5042/2023, which extended personal allowance to employee categories without providing for a corresponding restriction.
Characteristic is the intervention of the Economic Policy Employees Union of the Finance Ministry (S.Y.OI.P.Y.O.), which argues that the regulation does not eliminate the salary injustice it is supposed to remedy. As it states, even after implementing the provision, newer employees will continue to receive lower salaries than colleagues serving in the same positions, maintaining a “two-speed” employee regime.
The same organization also points out that cumulative inflation for the 2019-2026 period exceeds 27%, while increases in public employee salaries move at significantly lower levels. In this context, it demands, among other things, the abolition of the cap and the establishment of personal allowance as pensionable income for both old and new employees.
Beneficiaries of the new regulation
According to the ministry, beneficiaries of the new regulation will be employees who have been appointed or transferred from April 1, 2023, onwards to the Ministry of National Economy and Finance, its supervised agencies, independent authorities, as well as other special public sector bodies. The number of beneficiaries is estimated to reach up to 10,000, with monthly increases in their gross salaries reaching up to €300.
However, the fact that for employees of the same services who were appointed or transferred before April 1, 2023, no corresponding cap applies to personal allowance constitutes the main point of criticism, as, according to employee representatives, salary disparities are not only not eliminated but in many cases continue to remain significant. Nevertheless, competent sources from the Ministry of National Economy and Finance clarify that there will be no changes to this specific provision and it will be included as is in the multi-bill that will be submitted tonight to parliament.
