(October 2016) The latest budget confirms government commitments to restoring some of the pay cuts introduced in 2009 and 2010 and to reduce the pensions levy also imposed as part of the austerity measures. Public sector workers are set to get a EUR 1000 pay rise in 2017 and a EUR 1000 reduction in the pensions levy. Public sector unions have welcomed the establishment of the Public Services Pay Commission as a contribution to the process of unwinding the austerity agreements and legislation covering public sector pay and conditions.
Next steps to restore pay after austerity
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The FSC-CCOO and FeSP-UGT public sector federations have negotiated a deal with the government which will mean gradual restoration of purchasing power and other rights lost during the years of austerity. Over the next three years salaries will increase by at least 6.12% but this could rise to 8.79% if certain economic and deficit targets are met. There is also a commitment to get temporary employment down from 24% to 8% of the workfoce. Restrictions on recruitment will be loosened with certain priority areas now able to replace all workers who leave. The deal also confirms the return to