Public Sector Pay Raise Goes Retroactive to 2023 in Spain

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There was a sector of public work that had its salary frozen for several years, and workers complained that not all promised increases from the government had been implemented. The Ministry of Finance has now confirmed that the wait is over and the promised raise, retroactive to January 1, 2023, has taken effect.

The department led by Maria Jesus Montero will increase these workers’ pay by 0.5 percent each month after a Real Decreto-Ley was approved to implement the change. The measure ties the increase to the performance of the economy and had been a major demand of the sector’s key representatives. Employees are pleased and looking forward to the payroll date that will bring several extra benefits, as the reform envisions. Beginning in late February, those chosen to receive the raise will start to see the first results in their paychecks.

Public servants celebrate the raise

All public administration workers will receive a 0.5 percent salary increase, the finance minister announced. The minister has finally brought to a close a lengthy process to realize the long-awaited raise that public employees have hoped for. The measure is already in effect, so changes will show up in the next payroll.

The government has prepared a plan outlining the steps to transform the new salaries for the high-ranking officials, managerial staff, and other employees within the state public sector who have legal authorization. These steps are outlined in the Real Decreto-Ley dated February 7, 2024.

These are the instructions workers will receive

Payrolls will include a specific section titled the “Payment of arrears and the 0.5% GDP increase for 2023.” Beyond the base salary, subsequent payments will include extraordinary arrears for delays covered by the decree. The document also states that the additional 0.5 percent increase will be calculated on the remunerations in effect on December 31, 2022, with the effect starting January 1, 2023, and reflected in the February 2024 payroll.

However, in many cases the payment may not be immediate due to budget constraints, so the arrears may be delayed as funds are allocated from the same budget line used for other employee salaries.

How public sector workers will receive their raise

In addition, the official gazette describes different methods for delivering all arrears from the 0.5 percent raise:

  • If the employee did not change positions between January 2023 and the last day of the month before arrears are paid, the increases will be paid automatically by the agency where the worker is employed.
  • If the employee changed positions within the state public sector during the specified period, arrears will be paid by the center that disbursed the wages after the employee submits a request to the personnel agency.
  • If the employee moved to work for a different public administration in that period, the arrears corresponding to the time served in the state public sector will be paid by the center where they worked, upon the employee’s request.
  • For cases outside active duty, such as retirement or public employment loss, arrears will be paid by the authority that issued the salaries, upon the request of the employee or their heirs in the event of death.
  • If the employee only received triennia payments during that period, arrears for this item will be paid by the authority that issued those payments.

Employees will receive their raises in this manner: the arrears payment schedule will follow the timelines and conditions set by law, whether under applicable collective agreements or for staff not bound by an agreement. For non-contracted personnel, arrears will be paid in the first payroll of the month following the completion of the procedures required by the General State Budget Law for 2023.

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