Government, unions sign €1.3 billion public service collective agreement

Public service workers will benefit from a new collective agreement in January that will add €1.3 billion to the current government wage bill over six years.

The agreement covers the period 1 January 2025 to 31 December 2030 and will result in an average yearly wage increase, including allowances, of 3.85%. The agreement covers 33,000 public service workers and is over and above any other arrangements reached through sectoral agreements.

The collective agreement between the government and 10 unions was signed on Friday, making it the first such agreement to be finalised before the expiry of existing arrangements.

The agreement will result in basic pay increases, higher existing allowances and the introduction of new allowances.

The basic wage at the lowest public service scale (Scale 20) is set to increase to €1,200 above the minimum wage from the current €500. Anybody joining the public service on Scale 20 next year will benefit from quicker progression and move up to Scale 19 after just six months and to Scale 18 after another six months. Those currently on Scale 20 will automatically be bumped up in January

These new arrangements will ensure substantially improved pay packets for low wage earners.

Workers in overtime-paying grades will gradually benefit from over-time rates equivalent to their respective scale unlike what happens today where a standard rate is paid across the board. This measure will result in improved overtime payments.

A new long service bonus will be introduced from 2026 and workers who obtain qualifications will benefit from improved rates from 2027. Anybody who obtains a Masters degree will automatically benefit from better pay from January 2025.

The agreement will also see public service workers benefitting from a higher tax rebate on payments made into a private pension scheme.

A new reconciliation board will be set up to try and resolve any disputes that may arise in an amicable way.

Public service workers are country’s backbone

Prime Minister Robert Abela described it as “the best” collective agreement ever reached and “an investment” in public service workers.

“The country’s strong economic growth has made it possible to give the increases prospected by this agreement, which will amount to €1.27 billion,” Abela said ahead of the signing ceremony at Auberge de Castille.

The Prime Minister said his government was committed to improve incomes for families by translating economic growth into tangible benefits that improve people’s quality of life.

“Public service workers are the backbone of this country and the ones who are always there, especially in moments of crisis such as when the pandemic hit and they rose to the occasion,” Abela said.

The Prime Minister said the next crucial challenge for public service workers is the creation of Vision 2050 that will cut across sectors.

Abela ended his speech by thanking the government’s Industrial Relations Unit and the 10 unions for showing goodwill and concluding the agreement well before the expiry date of the existing agreement.

Principal Permanent Secretary Tony Sultana said the agreement targets a better quality of life by giving importance to mental health issues and green initiatives apart from better pay packets. He urged public service heads present for the signing ceremony not to fear change.

“Today, is a sign of trust in all public service workers but also a commitment to honour the agreement in its totality and provide a better service to the public,” Sultana said.