Overview of Civil Service Pay Increases in Spain
The public sector is anticipated to receive favorable adjustments to salaries as a result of recent negotiations. In 2022, the Government and the unions reached a Framework Agreement that included elements designed to counteract inflation and protect purchasing power for 3.3 million public employees across national, regional, and local administrations in Spain. The agreement established a multi-year plan for salary growth, with increases scheduled for 2022, 2023, and 2024, and outlined reforms meant to prevent a loss of real income in the face of rising prices.
In October 2022, the Government, along with the unions UGT and Workers’ Commissions (CCOO), formalized a package aimed at increasing public sector salaries over three years. The central objective was to preserve purchasing power for workers amid persistent inflation, and the plan covered employees at all levels of administration, including local, regional, and state authorities.
Additionally, the agreement encompassed workplace improvements. These included a 35-hour workweek and a substantial salary uplift over the same three-year span, paired with the creation of equality initiatives and steps to address pension reform. The measures affect staff across all public administrations, from city halls to regional governments and the central state.
Further Confirmed Increases
As part of negotiations linked to the latest General State Budget, a base 2.5 percent salary rise for civil servants was approved, with a further 0.5 percent possibility contingent on inflation indicators. The depreciated value of the consumer price index was projected to exceed 6 percent, and unions estimated the annual CPI impact for the year could reach around 8.3 percent. These projections reflect the ongoing effort to maintain income levels against price pressures observed in the economy.
According to UGT, the announced increases are retroactive to January, will be consolidated, and are to be implemented starting in October 2023. While the 0.5 percent payroll increase was set to take effect in October, the corresponding pay adjustments were expected to appear on the November payroll cycle. This underscores the staggered nature of public sector salary corrections introduced over the last two years.
Historically, the changes began with 2022, when the General State Budgets outlined a 2 percent base increase plus an additional 1.5 percent to offset inflation. Building on that foundation, negotiations anticipated a further 2 percent salary hike in the 2024 state budget, with an additional 0.5 percent possible in October of the following year if inflation continued to rise as measured by the IPCA, which is calculated up to September each year. The intention behind these adjustments is to sustain fair compensation for civil servants amid evolving economic conditions and living costs.