More than three-fifths (66.5%) of the 741,698 state employees will see a pay rise below the average annual inflation rate estimated for this year, of 7.7%, according to the Public Finance Council, or 7.4% , in the government’s forecasts. This means that 493,698 civil servants will suffer a loss of purchasing power in the coming year, as they will only receive an increase between 6.4% and 2%, according to the accounts of DN/Dinheiro Vivo based on the salary update proposal that the Minister of the Presidency, Mariana Vieira da Silva, who oversees this area, handed it over to civil servants unions this Monday.
Only one in three (33.43%), i.e. about 248 thousand employees in the lowest salary positions, including here the 84 thousand technical assistants who jump one level in the salary scale, are entitled to increases above inflation, of which about 10 .7% and 7.4%.
Faced with the loss of purchasing power of the majority of state workers, who will have updates in 2023 that are lower than this year’s annual inflation, Mariana Vieira da Silva explained that “this proposal is fair and balanced and is primarily intended to respond to workers with lower salaries, as inflation mainly affects those who receive the least”. On the other hand, the “available budgets” do not allow for higher flights: “A 7.4% increase for all employees would be unaffordable in the budgetary space available to the government, because it is also necessary to revise the career and maintenance of progressions and promotions that guarantee the development of careers thawed since 2018”.
The minimum wage in the state will grow by 56.58 euros, which is 8%, compared to the current 705 euros. According to the cabinet proposal, 164,000 employees at this salary level and at the next level (709 euros) are covered by this update.
The increases proposed by the cabinet for 2023 follow a different logic than in other years. Instead of taking into account the evolution of inflation, it sets the increase in the minimum wage from 705 to 761.58 euros, an increase of 56.58 euros, or an increase of 8%. The second salary position of 709 euros is absorbed by this growth. In this case, that means an increase of 52.58 euros, or an update of about 7.4%. In this universe, there are 164,000 employees, accompanied by about 84,000 technical assistants who, by increasing one level on the pay scale, will receive 104.22 euros in January, which represents an update of 10.7% on average. to the government. In total, these 248,000 employees (33.43%) will benefit from an increase equal to or higher than inflation.
The calculation for most of the remaining 493,698 civil servants is different. In 2023, gross monthly salaries up to 2600 euros are entitled to 52.11 euros extra per month. The update for salaries above that level will be 2%. This rule applies not only in 2023, but also in the next three years until 2026, at the end of the legislature. After all, the increases can vary between 2% for salaries above 2600 euros gross per month and 6.4% for a basic salary of 809.13 euros for the remunerated position directly following the minimum wage (761.68 euros) which, with an increase of 52 .11 euros will reach 861.24 euros.
There is also a multi-year component, until 2026, according to which the government plans to grant a seniority bonus in phases and over the next four years to operational assistants with more than 30 years of career (€104.22 extra) and older than 15 years. (plus 52.11 euros). Until the end of the legislature, the executive is planning to allocate another EUR 52.11 to senior technicians, excluding those in the first two positions who have already had raises this year. This bonus is cumulative with the 52.11 update scheduled for 2023.
“A 7.4% increase for all workers would be prohibitive in the fiscal space available to the government, as it is also necessary to include career review and progression retention.” – Mariana Vieira da Silva, Minister of the Presidency.
The salary increase and career review proposal will have a budgetary impact of EUR 1200 million in 2023, compared to the EUR 680 million spent this year. Although Minister Mariana Vieira da Silva underlined “this significant effort by the government to increase the weight of wages in GDP”, the three union federations criticized the document.
The Common Front flatly rejected “accepting an impoverishment proposal that does not correspond to the loss of purchasing power and the rise in prices,” said Secretary-General Sebastião Santana. Along the same lines, Maria Helena Rodrigues, president of the Union of State Technical Staff (STE), believed that “the government could do better”.
José Abraão, secretary-general of the Federation of Public Administration Trade Unions (Fesap), was more optimistic, despite the reported “shortcomings”, saying that “the government showed openness to increase the meal allowance”, which is in the 4 state. 77 euros, as well as “speed up the counting of lost points for operational assistants”.
The government’s proposal has not yet been finalized. Mariana Vieira da Silva even admitted “minor hits”, taking into account union claims. Trade unions and the cabinet will meet again next Friday to try to reach an agreement on the annual salary update for 2023 and multi-years until 2026.
Source: DN
