The Economic and Social Council (CES), a body that brings together the government, employers and trade unions at the same table, believes that the government should increase pensions and civil servants more by 2023, according to the advice on the proposal for the National Budget for 2023 (OE2023 ) approved this Monday and to which Dinheiro Vivo had access.
The document raises “several concerns about how the pension update from 2023 is calculated”. It should be recalled that, as a counterpart to the bonus of more half-pension paid in October, the executive has decided to halve the increase provided for by law between 7.1% and 8% to between 3.53% and 4.43% . calculation formula.
“The option of the OE proposal means a loss in the future value of pensions, as the exceptional supplement will not integrate the value of pensions that will be subject to increases in 2023, in addition to the fact that the update rates will be much lower than those which result from the application of the legal formula”, according to the opinion of the ESC.
On the other hand, “the 4% inflation reference in 2023 is far from a consensus forecast,” the document reads.
As for wage increases for state employees, the OE proposal foresees annual increases, until 2026, from EUR 52.11 for salaries to EUR 2600 gross and 2% for salaries above this level. Adding in the advancements and promotions, as well as valorizing the careers of senior technician, technical assistant and operations assistant, gives an average earnings growth of 5.1%.
However, CES believes that combining progression and promotions with salary increases is not the best way to quantify salary increases. In addition, the lack of progression and promotions was in many cases due to political decisions that were enforced for years and which in many cases are irrecoverable given the aging workforce in the sector.
The CES thus suggests greater ambition in valuing the careers and salaries of public sector workers, noting that “between 2009 and 2022, public administration workers lost more than 20% of their purchasing power (the equivalent of three salaries), taking into account verified inflation and the almost total absence of salary updates”. “For 2023, the planned update will again translate into a real loss in the wages of these workers,” he adds.
In general, the ESC believes that the proposed SO for 2023 is “timid in terms of measures to support the ongoing and expected economic and social effects of the war in Ukraine; cautious about European developments in response to the crisis, the beginning of monetary policy”.
However, the organ, chaired by the socialist Francisco Assis, emphasizes that there is “room for maneuver to cope with the internal consequences of a possible deterioration of the international situation”. In this sense, the CES advises “the government to adopt a flexible and dynamic attitude in the implementation of the budget, by reacting quickly to the most unforeseen situations, namely in terms of strengthening support for families and businesses” .
The Economic and Social Council has prepared this opinion on the proposal for the OE2023, at the request of the Parliamentary Committee on Budget and Finance, whose request and submission to CES of the respective draft law took place on 11 October. In this regard, CES criticizes “the tight deadlines for drafting the opinion”, which allowed for “as in-depth discussion as would be necessary, especially since CES is a body made up of very diverse entities”, the same document reads.
Salomé Pinto is a journalist for Dinheiro Vivo
Source: DN
