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Civil servants: Pay raises effective as from tomorrow

30/01/2003 12:05
Civil servants' salaries will be 7.7% higher as from tomorrow after the approval of the respective bill by the House of Representatives on 16 January 2003.

According to the Finance Ministry announcement, the said raise will be equivalent to the raise of the semi-governmental civil servants and falls within the framework of the renewal of union contracts for the period between 1.1.2001 and 31.1.2003 (2% from 1.1.2001, 2.75% from 2002 and 2.75% from 1.1.2003).

Meanwhile, back pay for 2001 and 2002 will be settled as soon as the necessary procedures have been completed, while it is still unknown whether the additional expenditures for those two years have been included in the fiscal deficit for 2002 and 2001. The latest Monetary Policy Report of the Central Bank mentions that the working hypothesis of the Finance Ministry might be optimistic “if the payment of delayed pay rises and the scaled pay raises for civil servants do not counterbalance”.

CB and FinMin officials were not available to comment on the issue while this report was in progress