The public sector has finally secured a salary upgrade that had been held back for years. Government workers’ pay bands kept still while promises from the administration came and went. The Ministry of Finance has confirmed retroactive implementation of the long-awaited raise, effective from January 1, 2023, with more money landing in paychecks as the new year rolled in.
The department led by Maria Jesus Montero announced that public servants will see a 0.5% monthly pay increase. The change was approved through a Royal Decree-Law designed to apply the increase and tie it to the country’s economic performance. Public employees, who have long pressed for this adjustment, now anticipate the payroll date when the additional funds will appear, bringing several extras alongside the raise as part of the broader reform. Beginning in late February, eligible workers should begin receiving the higher salaries.
Public workers celebrate the raise
All civil servants will receive a 0.5% wage increase, according to the finance minister. This marks the end of a lengthy process to make the promised raise a reality for the entire public sector. The measure is now in effect, and the next payroll cycle will reflect the updated pay scale.
News coverage notes that the government’s decision to lift wages correlates with a rising GDP, which in turn has pulled up overall household income in some analyses. Analysts and observers have debated the impact on the national income distribution, with social media posts highlighting the boost to household budgets as part of the recovery narrative.
The Executive has published a plan outlining how the revised salaries will appear for senior officials, managers, and other public employees who are legally entitled to increases. The steps are described in the Royal Decree-Law dated February 7, 2024, which lays out how the adjustments will be administered across the state apparatus.
These are the instructions public servants will see
The pay slips will include a dedicated section labeled “Payment of backdated amounts and the 0.5% GDP increase for 2023.” In addition to the base salary, the payrolls will show exceptional back payments for delays caused by the Decree-Law. The documentation also clarifies that: “The extra 0.5% rise will be calculated on compensation in force as of December 31, 2022, taking effect January 1, 2023, and reflected in the February 2024 payroll.”
There is a possibility that immediate disbursement may not be possible in every case due to budget constraints. In such situations, payments will be postponed until funds are available, since the money for the raise and back pay will be drawn from the same salary-related budget lines as other staffing costs.
How employees will receive the increase
The BOE details several methods for delivering the backdated increases. If an employee has not changed roles between January 2023 and the end of the prior month before back pay, the increase is paid automatically by the employer organization. If a post change occurred within the state sector during that window, back pay will be issued by the organization that currently pays the employee after the staff member requests it from human resources. If the employee moved to a different public administration during that period, the back pay corresponding to time spent in the State Public Sector will be paid by the entity that employed them, upon request.
For situations outside active service, such as retirement or public employment loss, back pay is issued by the body that paid the salaries, upon the request of the individual or their heirs in the event of death. If the employee only received triennial payments during that period, the back pay tied to this concept will be processed by the entity that paid those allowances.
Public workers will receive their increments through a structured timeline: the settlement of back pay will follow the deadlines and rules set by law, whether under applicable collective agreements or for staff not covered by an agreement. For personnel not aligned with those terms, back pay will be disbursed with the first payroll of the month following the completion of the required budgeting steps for 2023.
Notes for readers and observers
While the financial plan aims to raise wages and reinforce public sector reliability, observers caution that the real-world timing depends on budgetary realities. Still, the policy signals a shift toward aligning compensation with productivity and macroeconomic growth, an issue frequently debated in public discourse and policy forums [official government bulletin and press coverage, 2024].