Government on Friday signed a new collective agreement which will see 33,000 public service workers benefit from increases in basic salaries and allowances which will amount to €1.27 billion over a period of six years.
The new agreement will come into effect from 1 January 2025 to 31 December 2030, and it is the first such agreement to have been finalised before the expiration of the existing one. This collective agreement goes over and above arrangements of sectoral agreements.
The public service collective agreement will result in an average yearly wage increase, including allowances, of 3.85%. The basic salary for the lowest public service scale, Scale 20, is also set to increase to €1,200 above the minimum wage from the current €500.
Those starting at Scale 20 as from next year will benefit from a quicker progression, moving up to Scale 19 after six months of employment, and to scale 18 after a further six months. Workers on Scale 20 now will automatically progress in January.
Permanent Secretary Joyce Cassar explained the details in a media briefing, emphasizing that the new arrangements will ensure improvements in pay for low-wage workers.
Moreover, workers in overtime-paying grades will be gradually benefiting from over-time rates which are equivalent to their respective scale, unlike today, where a standard rate is paid for all, she explained.
From 2026, a new long-service bonus will also be introduced for workers who have served for a long period of time, Cassar said, adding that workers who obtain qualifications - from diploma onwards, will benefit from improved rates from 2027.
Those who obtain a Masters' degree, and those who have one but did not benefit from it in their role, will automatically benefit from better pay in January 2025, with Cassar saying that this is an indirect incentive for people to continue their studies.
More financial benefits include a greater tax rebate for workers under this agreement who have a third pillar pension. On-call and shift allowances will also increase.
Cassar said that a new reconciliation board will also be set up, in attempt to try and resolve disputes that could arise between unions.
Prime Minister Robert Abela spoke at a press conference ahead of the signing ceremony between union representatives and government at Castille.
Abela described it as "the best" collective agreement ever reached for the public service, which goes over and above sectoral agreements.
He said that public service workers are the backbone of the country, especially in times or crisis, as had happened when during the pandemic, when workers rose to the occasion.
Abela spoke of creating Vision 2050, and public service workers will face a crucial next challenge to synchronise a vision for all sectors.
Abela thanked government's Industrial Relations Unit and the 10 unions, for concluding the agreement before the current one's expiration date.
Principal Permanent Secretary Tony Sultana said that the agreement addresses a better work-life balance, quality of life, giving importance to mental health issues and the environment, aside from increased salaries.
He said this "largest" collective agreement in the country's history complements other sectoral agreements, and has been concluded a month before the current one expires.
Sultana said that today's agreement 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.