End of civil servant pay freeze to cost the state millions

A freeze on civil service pay rises and reductions established in 2012 for salaries over €2,001 a month has been abolished, meaning billions more will be spent from the state budget to pay civil servants in 2023.

The end to wage reductions, in combination with the cost-of-living-allowance (CoLA) that was partially granted by the state and the increments given at the beginning of the year, have caused the state payroll to skyrocket, daily Politis reported.

According to calculations, the 2023 state budget includes spending of €3.2 billion to cover staff salaries, pensions and gratuities compared to €3 billion in 2022.

Data from the government accounting office showed there are cases of government officials who saw their salary increase up to €1,000 net per month as in the case of the president, or by €800 per month for the house president.

The payroll of government officials is posted on the website of the general accounting office.

The office distributed a €1.3 million gratuity a few days ago to the former President Nicos Anastasiades and his ministers.

The amount of €1.3 million was paid tax-free.

In addition to the gratuity, former ministers also locked in a pension, the payment of which, like the pension of MPs, starts from the age of 60, provided that they do not hold another office.

The amount of the gratuity as well as the pension are determined according to the months they served.

Ministers and deputy ministers who do not complete a term of 18 months are not entitled to gratuity and pension.

Based on the current level of salaries of ministers and deputy ministers, the pension of a minister or deputy minister who served in office for 30 months is €1,036 per month and his gratuity €58,039.

A minister or deputy minister who served for one term, i.e. for five years, gets a pension amounting to €1,684 per month and a gratuity to €94,314.

Ministers and deputy ministers who serve two consecutive terms are entitled to a monthly pension of €4,146 and a gratuity of €232,157.

According to the general accounting office, the maximum pension amounts that can be received by a government official who served in one or more positions is as follows: president – maximum monthly pension amount €6,472, house president €5,148, minister, deputy minister, government representative €4,198, MP €3,734.