Benefits and handouts amounting to 1.6 billion euros, which reach €2 billion with the permanence or extension of reduced value-added tax rates, are included in the 2024 budget tabled in Parliament on Tuesday.
The fresh changes will lead to an increase in civil servants’ salaries after 14 years, a boost to pensions by around 3.05%, a 10% reduction in the Single Property Tax (ENFIA) for homes insured against natural disasters and an increase in the tax-free limit for families with children.
In terms of VAT rates, the reduced VAT rate applied since the period of the pandemic to transport, gyms, dance schools, cinemas, theaters and a range of goods related to public health is fixed, while the reduced VAT rate on coffee served and taxis will be maintained for the first half of the year 2024.
After 14 years, the payroll of civil servants is being reformed, with the budgetary cost amounting to €931 million. Civil servants will earn an average of one extra salary per year or, alternatively, around an additional €1,292. For example, an employee with a university degree who holds a managerial role and has one child will see a €70 per month salary increase and an additional €20 per month increase in family allowance for the child. In addition, they will see a 30% increase in the position of responsibility allowance they receive – i.e. an extra €135 per month. The annual benefit would be €2,700 gross or €1,674 net.
Also, a civil servant with two children will see an increase of around €70 per month to their salary and an additional €50 increase in the family allowance for the two children. The total annual benefit would be €1,440.
If this employee also holds the position of head of department, then they will have an additional benefit of 87 euros per month due to the 30% increase in the position of responsibility allowance.
Essentially, from January 1, the basic salary of all civil servants increases by €70 gross. At the same time, the family benefit received by 50.3% of civil servants (334,000) is increasing.
