Public Sector: Retroactive Wage Increases from June for 40,000 Employees with ‘Personal Differential’

Retroactive wage increases from June will be given to nearly 40,000 public sector employees, according to a government directive. These employees have been excluded from previous salary adjustments due to the existence of a ‘personal differential’ that froze their wages. With a circular from Deputy Minister of Finance Thanos Petralias, a mechanism for partial elimination of the personal differential is being implemented for the first time, paving the way for salary increases for excluded public employees. The increases will be applied next month with retroactivity from June 2024. The cost of these raises to the state budget amounts to €12 million, providing corresponding benefits to the eligible public employees. This move aims to close the gap in career progression among employees with similar qualifications and service years, who previously experienced significant pay disparities due to the personal differential status. Excluded are increases linked to the private sector’s minimum wage. If the personal differential is up to €300, it won’t be offset against any raise. For differentials exceeding €300, the smaller amount between 50% of the basic salary increase or the excess above €300 will be offset. Examples provided by the Ministry of Finance show increases reaching up to €110 per month in some cases.