The Government has today approved the remuneration increase of 0.5% for all employees and employees of the Public Administrations included in the Law of General Budgets of the State 2023 as a formula to compensate for the loss of purchasing power due to inflation. This increase in wages is due to the situation of the Harmonized Consumer Price Index (CPI), according to data reported by the National Institute of Statistics (INE). It will have retroactive effects from January 1, 2023 and will begin to be perceived in the payroll of the month of October, thus complying with the agreement between the Ministry of Finance and Public Function and the trade union organizations in the ‘Framework Agreement for a 21st Century Administration’.
This remuneration increase is executed in compliance with the provisions of the PGE law corresponding to 2023, which includes this possibility when the sum of the Harmonized CPI (IPCA) of 2022 and the CPI data advanced by the INE of September 2023 was greater than 6%. In the first case, the HICP of 2022 was 5.5%, while the second has reached 3.2%. This results in a percentage of 8.7%, which prompted you to carry out that half-point rise.
With this Agreement of the Council of Ministers, the Government perseveres in giving a social response to the economic crisis caused by the global inflationary spiral. Thus, public employees and employees are not left behind, who go from losing purchasing power in previous crises to having their salaries updated. A recognition that occurs in a period like the current one, marked by the consequences of the coronavirus pandemic and the increase in energy and raw materials caused by the war in Ukraine.
The increase will benefit more than 10,000 public employees in Melilla and about 3.5 million people who carry out their work for public administrations throughout the country. Most of them work for the Autonomous Communities, which employs almost 60% of all personnel working for the State. These are followed by the number of staff by the Local Entities and the Central Administration. The investment to implement the measure will be 791 million euros, with an average increase of 180 euros in the annual payroll.
This agreement demonstrates the willingness of the Executive to guarantee the purchasing power of personnel dedicated to public service. This has meant that in the last five years there have been increases in salaries for public employees and employees, even in a context of crisis and extremely high inflation. In 2020, the year of the coronavirus, the increase was 2%, while in 2022 an increase of 3.5% was reached, after the agreement signed by government and trade unions.
That this measure is carried out also shows the commitment to the social dialogue of the Government chaired by Pedro Sánchez, which has reached numerous agreements with the trade union centers to give the greatest possible recognition to officials, labor personnel and other people working at the state, regional or local level. Something that culminated with that Framework Agreement for a 21st Century Administration, which in addition to remunerative issues includes measures to modernize the public service.
In this 2023, other reforms related to the improvement of the conditions of personnel at the service of the Administrations have already been addressed. Among them is the update of the compensation for mileage expenses for those who work with their own vehicle, which went from 0.19 euros to 0.26 euros per kilometer traveled. In addition, the excepted amount of locomotion costs and daily subsistence allowance (DSA) was updated to the same figure.
The path of salary improvements will culminate in the year 2024, where the Government will comply with the provisions of that agreement in the salary area. Then, a 2% salary update will be produced in a fixed way and an optional 0.5% will be set that will be linked to the HICP, as has now happened.
By then, the total increase in the period 2022-2024 will have exceeded 8%, being able to reach 9.5% in those years, depending on the variables contemplated in the review clauses. In real terms, the revaluation can reach 9.8%, since the salary increase for each year is consolidated.
Updating the pay system in the Justice system
The Council of Ministers also addressed today the updating of the pay regime in the Administration of Justice. Judges, prosecutors and lawyers of the Administration of Justice will see their remuneration increased with retroactive effect from January 1, 2023 after the agreements reached with judicial associations and unions during this year. This circumstance recognizes the importance of those working in the judicial field and advances in organizational reforms and the modernization of the system included in the laws of judicial efficiency.
With regard to judges and prosecutors, the updating of the destination supplement by representation is approved, which will be between 440 and 450 euros per month depending on the body and the destination of the professionals. This will be executed gradually between 2023 and 2024, paying 40% with effect from January 1, 2023, another 40% from January 1, 2024, and the remaining 20% will take effect from July 1, 2024. A salary increase made on the basis of the provisions of Law 15/2003, of May 26, regulating the retributive regime of judicial and fiscal careers.
With regard to the remuneration of lawyers and lawyers of the Administration of Justice, the Government will recognize its work with a specific transitional supplement of 430 euros per month in the year 2023. This will accrue progressively with effect from 1 January 2023, from 1 January 2024 and, finally, from 1 July 2024. To carry out the salary increase, both Royal Decree 1130/2003 of 5 September, which regulates the remuneration regime of the Judicial Clerks Corps, and Royal Decree 2033/2009 of 30 December, which determines the standard posts attached to the Judicial Clerks Corps, are modified.
All these updates are not absorbable by other remunerative concepts, and will be compatible with other increases that may be included in future General Budget laws.