The issue of restoring the 13th and 14th salaries for public-sector employees is now considered definitively closed at the judicial level following a new ruling by the Council of State, according to labor lawyer Giannis Karouzos.

Speaking on ERT this morning, he said the country’s highest administrative court had once again rejected public-sector employees’ claims for the retroactive payment of Christmas and Easter bonuses and the annual leave allowance.

As he noted, this is the tenth consecutive ruling rejecting similar claims.

Karouzos stressed that the decision now establishes legal precedent on such claims. “Any consideration of restoring holiday bonuses and annual leave allowances for public-sector employees will only happen through legislative action, not through legal proceedings,” he said.

The reasoning behind the decision

Referring to the reasoning behind the ruling, the labor lawyer explained that the appeal was based, among other things, on the European framework for adequate minimum wages, which has been incorporated into Greek legislation in recent years and is linked to the new mechanism for determining the minimum wage.

The claimant argued that a similar criterion should also apply to his salary, citing, among other things, data on poverty levels and the cost of living.

However, according to Karouzos, the Council of State ruled that the pay increases and other salary measures granted to public-sector employees to date are sufficient under the applicable legal framework.

It also rejected comparisons between wage increases in the public and private sectors, since they operate under different pay systems, while also citing relevant case law from the European Court of Justice.

“The public sector is suffering from understaffing”

Karouzos nevertheless offered a different perspective on the issue, highlighting the social and economic consequences of low public-sector salaries.

As he pointed out, a newly appointed public-sector employee, particularly one with family obligations and at their first posting, may struggle even to cover basic living expenses on their salary.

“Little by little, we are seeing the public sector being hollowed out in terms of staffing,” he said, arguing that a number of successful candidates in recruitment competitions ultimately leave their positions or choose not to pursue a career in the public sector precisely because of salary levels.

According to him, restoring the bonuses could also have a broader economic impact, as part of the money paid to public-sector employees would flow back into the market, with the state indirectly benefiting through consumption-related tax revenues.

Public-sector pay increases and the gap with Europe

The labor lawyer acknowledged that measures have been taken in recent years to strengthen public-sector salaries, including linking the entry-level public-sector salary to developments in the private-sector minimum wage.

However, he argued that salaries remain low compared with European levels, making a career in the public sector less attractive.

“You can see how understaffed the public sector is,” he said, stressing that the public administration is not always the first choice for workers seeking to secure a decent standard of living.

Restoring the bonuses is a political decision

Regarding the possibility of restoring the 13th and 14th salaries, Karouzos was clear: the judicial route is now closed, but the issue remains open at the political and legislative level.

As he explained, if fiscal conditions allow it, a government could introduce legislation to restore the bonuses. It is therefore a political decision that depends on the country’s fiscal capacity.

“Through legislative action, and provided that the country’s finances could allow such a restoration,” he said, noting that many of the austerity measures imposed during the financial crisis have since been abolished.

“The issue is closed judicially, but politically and legislatively it is, of course, still open,” the labor lawyer concluded.