First public sector pay rise in 15 years passed by parliament

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Parliament yesterday passed legislation granting public and broader public sector workers their first pay rise in 15 years, with monthly increases ranging from 18.40 to 90 euros.

The pay hikes are set to take effect from October 1.

The bill, passed by parliament, reflects an agreement reached between the Ministry of Finance and trade unions.

Government employees and pensioners will see a 1.5% increase in their salaries at the end of the month, with lower-paid workers receiving a 2.4% boost as per a deal struck last summer.

Workers earning annual salaries below 22,000 euros will receive an increase of 18.40 euros per month, while those in the A16 salary scale will see a monthly rise of 88.75 euros.

The Ministry of Finance stated that the minimum general increase for basic annual salaries below 22,085 euros would be 331.38 euros per year, equating to a monthly increase of 18.40 euros for this category.

Employees at the starting scale of A8, earning 24,500 euros annually, will receive a yearly increase of 367.50 euros, or 30.50 euros monthly. Those in the A16 scale will see an annual increase exceeding 1,000 euros, equivalent to 88.75 euros per month.

The cost of the pay rise is estimated at 12 million euros for this year, rising to 40.7 million euros in 2025.

The bill passed with 25 votes in favour from AKEL, DIKO, EDEK, and DEPA parties, while 17 MPs from DISY, ELAM, the Greens, one AKEL MP, and an independent MP voted against it.

Further salary increases are expected in the new year with the addition of the cost of living allowance (CoLA) and the elimination of remaining austerity-era deductions on certain benefits.

The vote followed extensive debate, with DISY MPs expressing concerns about inflating the public wage bill, while DIKO representatives argued the increases were justified due to economic growth.

Discussions also touched on inequality between public and private sector workers and concerns about productivity in the public sector.

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