Greek Government Reconsiders Bonus Salaries as Popularity Declines

06:55 9/3/2025 - Πηγή: Dikaiologitika

Before any changes are made, the government will engage in consultations with the European Commission to assess new spending limits under the EU’s Stability Pact.

The Greek government is seriously considering reinstating the 13th salary for public sector

employees, a move that signals a potential shift in policy as it struggles with declining popularity. The issue, which had long been sidelined due to fiscal constraints, has resurfaced, with final decisions expected in 2025. Before any changes are made, the government will engage in consultations with the European Commission to assess new spending limits under the EU’s Stability Pact.

For years, Greek authorities have resisted pressure from ADEDY, the civil servants’ union, to restore both the 13th and 14th salaries, citing the significant financial strain it would place on the budget. These payments, commonly referred to as the Christmas bonus, Easter bonus, and vacation allowance, were once standard for public sector workers before being cut during the country’s debt crisis. Estimates suggest that reinstating them would cost the state around €3 billion.

The debate over these payments has not only played out in the political sphere but also in the courts. In 2019, Greece’s highest administrative court, the Council of State, ruled that their suspension was constitutional due to the financial crisis. However, a new hearing scheduled for June 6, 2025, will reevaluate the matter, considering whether Greece’s improved economic conditions justify their return.

Beyond labor unions, the Judges and Prosecutors Association has also thrown its weight behind the demand for salary restoration, officially advocating for the reinstatement of judicial pay. Despite the mounting pressure, Finance Minister Kostis Hatzidakis has cautioned that the government has little room in its budget for additional benefits, emphasizing the need to balance any decision with financial stability and EU fiscal rules. Deputy Finance Minister Thanos Petralias has reinforced this stance, noting that after committing €2.5 billion in benefits to public sector employees, adding another €2.15-2.3 billion would be fiscally unsustainable.

Despite these concerns, shifting political dynamics are reshaping the government’s position. With its standing in public opinion polls slipping, officials who once ruled out the 13th salary are now revisiting the idea, weighing economic constraints against the political imperative of regaining voter support.

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