Civil servants will receive their full benefits without any memorandum-era deductions and an increased cost of living allowance (CoLA) in 2025.
According to public sector employment policy, salary adjustments based on CoLA will continue next year.
The CoLA rate will remain at 66.7 per cent of the underlying index increase from the previous year.
The adjustment will be suspended only if economic growth in real terms, seasonally adjusted, is negative during the second and third quarters of the preceding year – a condition that does not apply for 2024.
Finance Minister Makis Keravnos recently stated that the current CoLA system needs reform.
He suggested linking it to economic growth and productivity rates to ensure fairer wealth distribution.
The matter will soon be discussed extensively among relevant ministers and through social dialogue, following an agreement made in 2023 between Labour Minister Yiannis Panayiotou, employer associations and trade unions.
Whilst no general pay rises will be implemented, all memorandum-era benefit deductions will cease from January 1, 2025.
The gradual restoration of salaries and benefits began seven years ago, with partial relaxation of reductions on shift work and overtime compensation starting March 1, 2017.
Additional benefit cuts were reduced by 50 per cent this year.
The Ministry of Finance will prioritise filling permanent positions rather than hiring temporary staff in 2025.
The budget includes provisions for creating 524 positions whilst abolishing 532 (332 permanent civil service positions and 200 permanent hourly-paid government staff positions).
Government employment figures show the total public sector workforce decreased by 1,569 over the past 12 years, from 52,267 on 1 December 2012 to 50,698 by June 30, 2024.
This figure excludes approximately 3,090 contracted soldiers who replaced about 3,400 conscripts.
Despite the overall reduction, education sector employment increased by 2,767 during the same period.
Additional staff reinforcements were made in critical areas including migration and asylum, police, environment and digital transformation.
Read more:
