Public servants are expected to receive further pay increases next year through a 1.5% general rise, annual increments and cost-of-living allowance adjustments.
The Finance Ministry has issued a circular as part of preparations for the 2027 state budget, setting out guidelines for the state payroll.
According to the circular, the general salary increase for the 2027-2029 period remains at 1.5%. It also says annual increments will be granted during the three-year period.
Under the agreement on the cost-of-living allowance, known as CoLA, reached between the social partners and the Finance Ministry, the adjustment from July 1, 2026 to June 30, 2027 is linked to the increase in the 2025 calculation, according to the circular.
From July 1 onwards, CoLA will be calculated at 100% of the previous year’s rate, with a maximum increase of 4%.
According to the circular, CoLA increases for the next three-year period will be 0.12% from January 1, 2027 to June 30, 2027; 4% from July 1, 2027 to June 30, 2028; 2.5% from July 1, 2028 to June 30, 2029; and 2% from July 1, 2029 to June 30, 2030.
The cost-of-living index for public servants and officials, including the president and members of the Public Service Commission and the Education Service Commission, will be 12.7% from January 1, 2027 to June 30, 2027; 17.21% from July 1, 2027 to June 30, 2028; 20.14% from July 1, 2028 to June 30, 2029; and 22.54% from July 1, 2029 to June 30, 2030.
For the representation allowance and remuneration of the House president and MPs, the cost-of-living index will be 28.33% from January 1, 2027 to June 30, 2027; 33.46% from July 1, 2027 to June 30, 2028; 36.8% from July 1, 2028 to June 30, 2029; and 39.54% from July 1, 2029 to June 30, 2030.
For the remuneration and representation allowance of the President of the Republic, ministers, deputy ministers, the government spokesman, the Law Commissioner and others covered by law or employment contract, the index will be 31.40% from January 1, 2027 to June 30, 2027; 36.66% from July 1, 2027 to June 30, 2028; 40.08% from July 1, 2028 to June 30, 2029; and 42.88% from July 1, 2029 to June 30, 2030.
The minimum annual cost-of-living amount will be €1,987 from January 1, 2027 to June 30, 2027; €2,692 from July 1, 2027 to June 30, 2028; €3,150 from July 1, 2028 to June 30, 2029; and €3,526 from July 1, 2029 to June 30, 2030.
The circular comes as the Finance Ministry is carrying out studies on containing the state payroll.
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