The trade union movement is reviving its long-standing demand to terminate the 10% salary deduction that is currently applying to all newcomers in the public sector.

The 10% cut was one of the drastic measures imposed by the "Troika" (international creditors) under the country's memorandum program, which aimed at streamlining the state payroll. The measure was implemented on January 1, 2012, and has remained in place ever since, despite Cyprus exiting the memorandum on March 31, 2016.

According to information obtained by Brief, the trade unions PASYDY, SEK, and PEO are bringing back to the Department of Public Administration and Personnel the request for the abolition of the 10% cut back.

The deduction applies to all new hires, including hourly government employees, as well as those paid under combined salary scales such as:

• A2-5-7-8 +1
• A8-10-11
• A10-11-12

Essentially, these employees are hired at 10% less than the starting salary provided by the combined scale to which they are assigned.

Paradoxically, the agreement between the government and the Troika did not include "high-earners" (those placed on salary scale A13 and above). The explanation provided during negotiations at the time was that the number of public servants at A13 and above was not large enough for a cut to yield significant savings for the state.

For the unions, it has been a matter of principle for years to demand the 10% cut also be applied to these higher scales. Instead, they are now pushing to end the deduction entirely, citing discrimination against lower-paid staff.

It is noted that in October 2024, the government granted salary increases across the broader public sector which, according to Finance Minister Makis Keravnos, aimed at "boosting disposable income, tackling inflation, and supporting the middle class."

Under the current agreement with creditors, the 10% deduction lasts for 24 consecutive months. After this period, employees receive the actual salary provided by their pay scale.

Under current conditions:

• For a newcomer on the combined A2-5-7 scale, the starting salary ranges between €1,200 and €1,300 per month (before the 10% deduction).
• For highly qualified young professionals, public sector employment is losing its incentive. Even those who pass the written entrance exams often leave as soon as they find better opportunities in the private sector.

Consequently, the Ministry of Finance is promoting bills to change the current structure of written recruitment examinations.

1. Terminate the 10% deduction for all newcomers.
2. Radically re-evaluate and change the overall architecture of the salary scales.

Source: BRIEF