Government proposes ending cuts to subsistence and transport allowances

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The government will propose to the public administration unions an end to the cuts in the value of subsistence and transport allowances, in force since December 2010, as part of the negotiations on the State Budget for 2024 (OE2024).

The government’s proposal, to which Lusa has had access, will be discussed at meetings on Wednesday between the Secretary of State for Public Administration, Inês Ramires, and the three union structures, at the Ministry of the Presidency in Lisbon, continuing the negotiation of the measures that make up the annual salary update.

In the document, the executive proposes the repeal of “article 4 of Decree-Law 137/2010, of December 28”, which provides for a reduction of between 15% and 20% in subsistence allowances and 10% in transport allowances.

The cut in subsistence and travel allowances was introduced in December 2010 by the Socialist government led by José Sócrates, during the financial crisis.

In addition to ending the cuts in subsistence and transport allowances, the government’s proposal also provides for an increase in the value of overtime, starting at 100 hours per year, as provided for under the Decent Work Agenda.

With this measure, which had already been announced to the unions at the first meeting on September 27, the value of overtime from the 100th hour onwards is increased from 25% to 50% for the first hour or fraction thereof, from 37.5% to 75% for each subsequent hour or fraction, on a working day, and from 50% to 100% for each hour or fraction, on a weekly rest day, compulsory or complementary, or on a public holiday.

As for the pay rise for 2024, at the last meeting with the trade unions, the government maintained its proposal for a rise equivalent to one pay level, which corresponds to increases of between 6.8% in the base pay and 2% for the highest salaries (a minimum increase of around 52 euros), as provided for in the multi-annual agreement signed a year ago.

However, the unions are demanding higher increases than those in the agreement signed in October last year between the government and the UGT unions, the Federation of Public Administration Unions (Fesap) and the Union of State Technical Staff (STE).

Fesap’s proposal for 2024 is for a 6% pay rise with a minimum of 80 euros per worker, while the STE is demanding an increase of more than 5% next year, taking into account the evolution of inflation and the cost of living.

Both organizations are also proposing an increase in the food allowance from the current six euros to 7.50 euros a day.

The CGTP’s Common Front of Public Administration Unions is demanding a pay rise of at least 15%, with a minimum of 150 euros for all workers.

With regard to ADSE, the government is proposing that the sums equivalent to the deductions that would be due by exempt beneficiaries should now be borne by the state budget, under terms to be defined by decree.

The proposal also foresees that municipalities will no longer bear the health costs of ADSE for their workers, which will amount to around 80 million euros a year, according to Fesap, which argues that this money should be borne by the state budget.

Moti Shabi
Moti Shabi
Moti Shabi

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