The public workers enjoyed in 2019, a significant gain of purchasing power. Almost two advancement points by the weakness of prices and the increase of wages. Also in 2020 will have if it meets the forecast of average inflation, to 0.9%, after the increase of salaries of 2% that has approved this Tuesday by the Council of Ministers. At the end, during the three years of the term of the agreement that the trade unions and the Government of the PP reached in 2018, officials recovered more than three percentage points of purchasing power.
The Council of Ministers has settled another of the pending issues of the previous Government in functions: the increase of 2% of the salary of the officials. The president of the Government, Pedro Sanchez, had committed to do nothing else outside vested, and has done so at the third meeting of the new Executive, as highlighted by the newly appointed minister of Territorial Policy and Public service, Carolina Darias.
the evolution of The purchasing power
officials
Wages, in %
IPC media, in %
gain or Loss of purchasing power
3,2
2,4
2,5
1,8
1,95
2,0
2,0
1,4
1,0
1,7
0
1,0
0,9
0,7
0,0
-0,2
-0,2
-0,5
-5,0
2010
11
12
(1)
13
14
15
16
17
18
19
(2)
20
(3)
(1) Suspension of the extra pay of December,
an amount that is around 7%.
(2) In negotiation for additional funds.
(3) 2020 forecast of inflation
Source: Ministry of Territorial Policy and Function
Public, trade unions, INE and own elaboration
THE COUNTRY
the evolution of The purchasing power
officials
Wages, in %
IPC media, in %
gain or Loss of purchasing power
3,2
2,4
2,5
1,8
1,95
2,0
2,0
1,4
1,0
1,7
0
1,0
0,9
0,7
0,0
-0,2
-0,2
-0,5
-5,0
2010
11
12
(1)
13
14
15
16
17
18
19
(2)
20
(3)
(1) Suspension of the extra pay of December, amount
that is around 7%.
(2) In negotiation for additional funds.
(3) 2020 forecast of inflation
Source: Ministry of Territorial Policy and Function
Public, trade unions, INE and own elaboration
THE COUNTRY
The evolution of the purchasing power of officers
Wages, in %
IPC media, in %
gain or Loss of purchasing power
3,2
2,4
2,5
1,95
2,0
1,8
1,4
2,0
1,0
0,9
1,7
0
1,0
0,7
0,0
-0,2
-0,2
-0,5
-5,0
2010
11
12
(1)
13
14
15
16
17
18
19
(2)
20
(3)
(1) Suspension of the extra pay of December, an amount that is around 7%.
(2) In negotiation for additional funds.
(3) 2020 forecast of inflation
Source: Ministry of Territorial Policy and Function
Public, trade unions, INE and own elaboration
THE COUNTRY
The decree law, the minister explained that it should be done like in 2019 because there is not a budget approved for this year, will entail an additional cost to the coffers of the state of 3.212 billion euros. According to the numbers provided Darias in the press conference, the move will benefit more than 2.5 million public workers. The unions estimate that the figure may reach more than three million.
The discrepancy in the data comes, probably, of the different statistical source. If you take the statistics of staff of the central registry of the Administration, the templates are lower because it does not account for temporary workers who do not reach a minimum time. The figure grows in change if you take the numberos of the economically active population survey.
The increase of 2% is an initial step. The increase may be even greater because there are 0.3% more so called “additional funding”, and that each Administration is negotiating how it is applied. More difficult will be added to the dependent variable of the progress of the GDP, because only be approved if the Spanish economy will grow this year by over 2% and, in view of the economic forecasts, it’s not likely to be reached that bar.
With this scenario is tentative, it can be concluded that the public workers will gain in purchasing power in 2020 for the third consecutive year. He had already done between 2014 and 2016, but then was due to the weakness of prices (which fell in the three exercises), and not to wage increases. Now, however, there is a combination of both.
The raises agreed to in 2018 have allowed the first year of the pact the increase in out-of-1,95%; the second, 2.5% (in the absence of applying the 0.25% of additional funds), and a 2% this year. Against these increases, the prices, although more vigorous than in the past, have not increased much: 1.7% in 2018, 0.7% in 2019 and 0.9% forecast to 2020 by Funcas. These latest figures respond to the average inflation of the year and not the annual December of a financial year. Why? Economists often point out that at the time of measuring the evolution of purchasing power it is better to take the average data, because the beneficiaries of the increases receive the salary and spend throughout the year and not just in a particular month.
Exposed to this, it is observed that the progress of the purchasing power would be 3.3 percentage points during the three-year period. This would compensate, in part, the retreat of the hardest years of the crisis, in which it consolidated a loss of 14 points (in 2010, they came to cut wages 5%, and after the salaries were frozen until 2016), which reached more than 20% with the suspension of the extra pay of December in 2012. However, the public workers of almost all the administrations since have recovered that extra suspended.
The three unions of the public function (CC, OO, CSIF and UGT) have taken advantage to claim his role. Reminded, once confirmed the decision of the Government, the raise arrives by the fulfillment of the covenant wage reached in march of 2018 with the then minister of Finance, Cristobal Montoro. “It was what was expected,” emphasized the head of UGT, Julio Lacuerda. The central officials, CSIF, recalled the letter he had submitted to the Government by ensuring the measure “as soon as possible”. And, for its part, the CC OO pointed out that the central “was mobilized long before the constitution of the new Executive for this pay rise out guaranteed and enforced immediately”.
