Civil servants may see wages rise a fourth time this year

Civil servants’ wages will be increased four times this year, by 2 percent each time. This is evident from new forecasts from the Federal Planning Bureau. Until now it was assumed that there would be three increases, but due to persistently high inflation, a fourth may be added.

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The forecast for annual inflation has been revised from 7.3 to 7.8 percent. In 2023, according to current expectations, it would still be 3.4 percent. Due to these high inflation figures, the pivotal index is exceeded much faster than normal. If the pivotal index is exceeded, social benefits are increased the following month, followed by civil servants’ wages a further month later.

Wages in the private sector are also rising

This year, bets rose for the first time in February, then again in April and a third hike is planned in June. The Federal Planning Bureau expects another exceedance of the pivotal index in October, a month earlier than initially planned. That means benefits in November and government employee wages would go up in December.

Not only the salaries of the civil servants are adjusted to the lifespan. High inflation causes private sector wages to rise. This happens at a different pace in every sector. For some sectors this happens monthly, for others once a year.

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