Marcelo presents a diploma for an interim 1% pay increase in the civil service.

The President of the Republic, Marcelo Rebelo de Sousa, unveiled this Friday a government charter granting a temporary 1% salary increase in the civil service, to be paid in May with retroactive effect to January.

In a note on the official website of the president, the head of state said that he had unveiled “a diploma that contributes to the renewal of the medium-term salary in the amount of civil servants’ remuneration.”

The Council of Ministers approved this Thursday a 1% interim salary increase in the civil service, payable in May, retroactive to January.

Mariana Vieira da Silva, Minister of the Office of the President, announced this at a press conference after the meeting of the Council of Ministers.

With an interim increase of 1%, “the agreement signed with the trade unions has been fulfilled, in the sense of assessing, after a year, the possibilities of the state to update the signed agreement,” the minister said.

Mariana Vieira da Silva said that with this update, the average wage growth is now 4.6% (up from the previous 3.6%) and the payroll increase that was 5.2% is now 6.6% .

A medium-term wage increase and an increase in the food subsidy, the latter to be approved by regulation, will be paid in May, retroactive to January, the government announced.

At a meeting with trade unions on Wednesday, the government told trade union structures that backdated payments relating to the months of January to April would be paid in May without tax withholding, and settlement would be made in 2024 after the filing of the annual return. income tax return.

The government is working on publishing adjusted income tax tables for May and June to account for the 1% pay rise, with a new IRS table model already published going into effect in July.

According to the government, the additional 1% pay increase to fight inflation represents a 245 million euro increase in public administration staff costs.

The increase in the food subsidy from €5.20 to €6 represents an increase in costs of €144 million plus taxes and contributions of €163 million for a total of €307 million.

The global payroll estimate for civil servants (including all measures such as promotions and promotions) increased from 5.1% to 6.6%, to 1,709 million euros.

This interim salary increase of 1% is added to the update already granted in January of about 52 euros for salaries up to about 2600 euros and 2% above this amount.

Globally, 40.5% of the 472,000 civil servants will see a 6% pay increase, and 16.7% of workers will see a 9.1% pay increase.

More than 320,000 civil servants have cleared the €100 barrier, taking into account various assessment measures, including an increase in the food subsidy, according to the government.