The legal path to reinstating the 13th and 14th salaries—and related holiday bonuses and leave allowances—for Greek public sector employees has effectively closed, following a definitive ruling by the Plenary Session of the Council of State (StE), Greece’s highest administrative court. According to labour lawyer Yiannis Karouzos, speaking to ERT, the decision marks the tenth time such judicial appeals have been rejected.
What the Ruling Means for Holiday Bonuses
The Council of State’s judgment establishes binding precedent—what Greek law calls dedikasmeno—on these matters. Since the issue has now been reviewed at the highest level of Greece’s administrative judiciary, further litigation seeking retroactive payment of Christmas and Easter bonuses or annual leave allowances is highly unlikely to succeed. As Karouzos emphasized, any future reinstatement of these benefits can no longer stem from court rulings—it would require explicit legislative action by Parliament.
The Legal Reasoning Behind the Decision
The appeal had invoked EU principles on adequate and dignified minimum wages, recently incorporated into Greek law alongside the new statutory minimum wage mechanism. The claimant argued that similar standards should apply to his own salary, citing rising living costs and poverty levels. However, the Council of State concluded that the salary adjustments already granted to public employees meet the requirements of this legal framework. The court also declined to compare public-sector pay increases with those in the private sector, noting the two operate under fundamentally different remuneration systems—a position supported by relevant case law from the European Court of Justice.
Broader Implications: Recruitment and Retention in the Public Sector
Karouzos highlighted a wider concern: the long-term impact of low starting salaries on the state’s ability to attract and retain qualified staff. He pointed out that newly appointed civil servants—especially those with family responsibilities—often struggle to cover even basic living expenses on their base salary. This, he warned, is contributing to a gradual erosion of public administration capacity. There are documented cases where candidates who successfully passed recruitment exams ultimately declined appointments—or left soon after—due to uncompetitive compensation packages.
Economic Impact of Reinstating the Bonuses
Karouzos added that restoring the 13th and 14th salaries would deliver more than just relief to public employees. It could stimulate domestic demand, support small businesses, and strengthen household financial resilience—particularly among lower- and middle-income families who rely heavily on these periodic payments.