Everything changes for salaries in the public sector and private sector from April 1st, with annual gross gains of €480 from the new entry-level salary for employees in central government, public entities, and local authorities, as well as €560 for the minimum wage, which sets the “floor” for wages of unskilled workers.
Minimum wage increases will range between 4.5% and 5%
The increases in the minimum wage will range between 4.5% and 5%, while over 200,000 workers hired at minimum wage during 2021-2024 will unlock salaries above €1,000 by year-end, as they will receive an additional 10% from completing three years at the same company. Additionally, public sector employees – within the framework of salary harmonization – will receive the difference from the current €850, up to the amount set for the private sector minimum wage. That is, if the private sector minimum wage increases from €880 to €920, the increase in the public sector will be (€850 + €70) across all salary scales.
The “unfreezing” of triennial increases will open opportunities
It is estimated that the “unfreezing” of triennial increases will open opportunities for other workers who will receive a 10% increase. The minimum wage at the first level will range from €1,016 gross and €1,162 with one child. According to legislation, seniority of every employee who was hired before February 14, 2012, as this seniority had been formed on February 14, 2012 – when its completion was suspended, continues to be added after January 1, 2024. It should be noted that for employees who are paid wages higher than those set in the minimum wage with triennial increases, employers are not obligated to give additional raises, but can offset these increases with existing wages. Meanwhile, all private and public sector employees had from January 2025 an annual benefit from €58.10 to €219.10 from the reduction of insurance contributions by half a unit.
€4,900 maximum annual benefit for private sector employees currently paid minimum wage after triennial increases activation in 2026
At the end of the year, public sector employees will share €40 million, with the maximum bonus reaching €1,660, which will be given to all employees involved in achieving targets, while those who ultimately achieve the targets will receive the remaining 60%. Beneficiaries are public sector employees who belong to entities subject to target-setting and evaluation (such as ministries, municipalities, regions, hospitals), as well as military personnel of the Armed Forces and uniformed personnel of the Security Bodies.
Employees engaged in issuing documents have already been registered in the Incentives Information System, and the Incentives Committee is expected to issue the “Certificate of Achievement of Entity Targets” within days. By the end of March, the Incentives Committee must recommend to the competent ministers the eligible entities that have achieved full success in at least one of the selected targets and the amount of reward to be shared among employees of each entity.
It should be noted that the target achievement incentive is not offset against any personal difference that public sector employees receive after the integration of allowances into the new salary system. The competent minister may set additional targets beyond the initial ones based on their contribution to citizens’ daily lives. Employees are entitled to rewards provided they:
- Have participated in the target-setting and evaluation process.
- Have served in an organizational unit that contributed to the full achievement of the selected target for reward for at least 4 months.
- At the time of reward payment, are not on leave or suspension of duties, have not been convicted definitively for an offense under the Civil Service Code, and have not been definitively imposed any disciplinary penalty.
Published in the Evening Edition
