MADRID (Reuters) – The Spanish government will offer civil servants a 3.5% pay rise in 2023 to partly offset the effects of soaring inflation, El Pais newspaper reported on Wednesday, citing unidentified labour union sources.
The 3.5% proposal will be negotiated with unions, which are asking for more, the newspaper said, adding the government may propose a cut in the number of weekly worked hours.
A general 3.5% pay raise for all civil servants would cost the government about 5 billion euros ($4.8 billion), El Pais said.
A spokesperson for the budget ministry declined to comment.
Last year, the government approved a 2% pay increase for civil servants, but annual inflation is currently much higher than then, at 10.5%.
European employers are facing growing demands from workers for wage increases that match or surpass inflation, which stands at or near three-decade highs. Higher wages, in turn, are likely to lift prices of goods and services further down the road.
($1 = 1.0455 euros)
(Reporting by Inti Landauro; Editing by Mark Potter)