Spain's Government Plans 2% Pay Raise for Civil Servants

Spain’s coalition government announced Friday its plan to give civil servants a two percent pay raise with retroactive effect from Jan. 1.

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The pay hike, which unions had requested prior to the announcement of Socialist Prime Minister Pedro Sanchez’s cabinet over the weekend, will be introduced as soon as possible, Spain’s Regional Policy Minister Carolina Darias told unions.

The measure will benefit 2.5 million public sector workers. 

On Dec. 30, PSOE and the left-wing Unidas Podemos party presented their joint governing deal, outlining the policies that will implement in their new coalition government. 

The governing plan includes tax rises for higher earners and large firms, an increase in the minimum wage and a partial overturn of regressive aspects of the conservative Popular Party’s labor reforms.

The plan includes an increase in social spending, especially in programs for the universalization of education; access to affordable housing; health programs, and support for small businesses. 

The parties will also ditch regulations that allow companies to fire workers who take official sick leave, as well as introducing measures to precarious and temporary jobs. The minimum wage could rise by as much as 60 percent, reaching almost US$1300. 

With regard to pensions, the progressive coalition will eliminate the formula that links pensions to life expectancy, as well as getting rid of the revaluation index, which sees pension rises subject to the performance of the Spanish economy. This, the document states, will “ensure the sustainability of the system in the medium and long term.”