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Austerity cuts: Tsipras to return €820mn to special categories of civil servants

Prime Minister Alexis Tsipras announced that certain groups of civil servants will receive retroactive a total of €820 million net for wage cuts during the economic crisis and the bailout agreements. The total amount is €1.4 billion gross including taxes, social security and pension contributions.

The money will be paid in full by the end of December, the Prime Minister said.

Speaking at an event of the Hellenic Air Force, Tsipras extolled the Air Force staff’s courage, loyalty to duty and long-term service, and said that the government was mindful of the wage injustices they faced during the country’s economic crisis.

He added that according to a draft law tabled the same night in Parliament, the HAF personnel stood to benefit from a total of 820 million euros from withholding during the crisis years that would be returned to members of defense forces and the Fire Service, to public doctors, university professors, justice

The “ first positive fiscal measure coming to Parliament after August 21 [end of bailout program]” will allow the restoration of cut wages in full by the end of December, he said.

According to media, the retroactive payment will affect also the pensioners of this group of civil servants of  so-called “special payroll.”

The retroactive payment refers to wages cuts after 31. July 2012 and will extend to a period of up to two years depending on the category of the professional groups.

The legislation is expected to be voted by all political parties in the Palriament – which party wouldn’t vote for it with parliamentary elections coming closer?

The payment follows relevant court decisions.

Meanwhile, thousands of pensioners have been rushing to apply for the return of the cut Christmas, Easter and Vacation bonus (13th and 14th pension) after pensioners have won legal cases in the country’s First Instance courts.

The courts decisions  have created a new headache for the government that tries to avoid the return of millions of euros to pensioners. the state has already appealed the decision won by a pensioner of the private sector.

However, the state did not appeal a relevant court decision won by two pensioners from state-run enterprise Public Power Company. The two privileged pensioners saw each 3,400 euros booked in their bank accounts short time after the curt decision.

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