Background information

In line with the strategic goals of the Pluriannual Agreement for the Valorisation of Public Administration Workers, the government decided to increase the value of Public Administration remuneration by 1%. This changed was implemented in January 2023.

This update measure, launched on 18 April 2023 by Decree Law no. 26 -B/2023, adds to the nominal increases made at the beginning of 2023 of €52, 11 for monthly gross salaries up to €2612.03 and 2% for higher amounts (Decree Law 84-F/2022 of 16 December 2022). See related measure Pluriannual agreement for the valorization of Public Administration Workers .

According to the government, this measure will contribute positively to the growth of the GDP and the reduction of the national deficit and debt.

Content of measure

The nominal increase by 1% is applicable to all workers in the public sector, including those encompassed by the Labour Code and workers in state owned companies who are not covered by collective agreements (Decree Law no. 26 -B/2023, articles 2, 3 and 4). This nominal increase applies to any remunerative supplements that relate to the public sector annual wage update update or to TRU levels.

The nominal increase by 1% applies to the remuneration levels of the single wage table (TRU) established by Decree Law 84-F/2022 (article 2) and to the monthly base wages (article 3), when these are not referred to the TRU.

The additional 1% salary update will cost €245 million. The government estimates that the overall increase of the public administration wage bill will amount to 6.6%, included in this increase other remunerations, such as progressions and promotions (Público, 5 April 2023).

Use of measure

Not available.

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Trade unions	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	No involvement
Form	Any other form of consultation, institutionalised (as stable working groups or committees) or informal	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Sectoral or branch level

Involvement

The rounds between the government and public sector trade unions to discuss a mid-term wage increase were linked to the implementation of the general wage increase in the sector foreseen by the Pluriannual Agreement for the Valorisation of Public Administration Workers for the year 2023 (and established by the Decree Law 84-F/2022 of 16 December). The Plurinanual Agreement was signed by the government and public sector trade unions affiliated of UGT, but not by those affiliated of CGTP.

The government initially proposed to start the implementation of the mid-term 1% wage increase in April 2023, but UGT trade unions claimed that the increase should have retroactive effects and apply from January 2023 (Público, 30 March). Following discussions with the unions, the government accepted this claim. The Decree Law no. 26 -B/2023 of 18 April ensures that the mid-term increase has retroactive effects. Nevertheless, UGT and CGTP unions considered the level of increase insufficient (see Views).

Views and reactions

The Federation of Public Administration Unions (FESAP/UGT) valued the openness of the government to negotiate measures and to comply with the Pluriannual agreement. They welcomed government acceptance of FESAP claims regarding the retroactivity of the measure. Nevertheless, this federation claimed that the measures are insufficient to face the increase in the cost of living. The State Technical Staff Union (STE), applauded the government decision to apply the increases retroactively to January, but claimed the necessity to go further defending a mid-term update by 1.5%. (Público, 5 April).

The Common Front of Public Administration Unions (FCSAP/CGTP) said that the government's proposal for an additional salary increase of 1% was an "absolute misery," representing an additional 25 cents per day in the lowest wages and 44 cents per day for senior staff. They stressed that public sector wage losses between 2009 and 2022 amounted to around three salaries. Also the FCSAP highlighted that the increase in the food allowance proposed by the government represents and additional 80 cents a day to face the increased price of the food basket, which is around 20% higher than normal. The Common Front demands wage increases by 10%, with a minimum of €100 per worker. They argue that the state should be able to guarantee this increase, given the growth of the GDP. (Expresso, 29 Março 2023).

Sources

• 24 October 2022: Acordo plurianual de valorização dos trabalhadores da Administração Pública (www.portugal.gov.pt)
• 07 November 2022: Opinion of the CES on the Draft State Budget for 2023 (ces.pt)
• 16 December 2022: Decreto-Lei n.º 84-F/2022, Diário da República n.º 221/2022 (diariodarepublica.pt)
• 29 March 2023: Expresso: Frente Comum: aumento de 1% "é uma miséria" que dá 25 cêntimos por dia (expresso.pt)
• 30 March 2023: Governo e sindicatos da UGT fazem contas a aumento intercalar desde Janeiro (www.publico.pt)
• 05 April 2023: Público: Aumento de 1% na função pública será pago em Maio com retroactivos (www.publico.pt)
• 18 April 2023: Decreto-Lei n.º 26-B/2023, Diário da República n.º 76/2023 (dre.pt)
• 11 May 2023: Salários aceleram, mas função pública continua a perder poder de compra _ Salários _ PÚBLICO (www.publico.pt)