
The Ministry of Labor has unveiled the specific details of the new pay scales for approximately 858,000 public-sector employees. Starting in January 2027, the lowest pay grade is set to reach at least the minimum wage, or 24,900 crowns. The system for promotions based on seniority is also set to change. However, a higher pay grade may not automatically result in an equally large increase in total pay, as employers will be able to adjust personal allowances during the transition to the new system. The proposed pay scales have not yet been definitively approved.
Currently, some pay scales fall below the minimum wage, so the resulting salary must be supplemented with other components. The new system is intended to remedy this situation. The lowest pay scale is to start at the minimum wage, and the difference between adjacent pay grades is to be at least four percent. For most employees, the number of pay grades will be reduced from twelve to eight, and promotion to a higher grade will generally occur after five years of eligible service. Separate pay grades will now also exist for employees with over 30 and 35 years of service.
However, a significant change is the ratio between the collective bargaining-based and non-entitlement portions of the salary. When transitioning to the new pay scales, the employer will be able to reduce the personal allowance within legal limits, but by no more than an amount corresponding to the increase in the collective bargaining rate. Thus, while the total salary must not decrease solely due to the transition to the new system, its increase does not have to correspond to the increase in the base rate. The ministry cites, for example, an employee at a job center counter with 11 years of experience, whose total salary is expected to increase by at least 4,120 crowns, or a cleaning lady, who is expected to see her pay rise by at least 3,510 crowns per month.
However, labor unions point out that the reform itself does not guarantee a pay increase for all employees. According to the presented calculations, some doctors, nurses, or social service workers may not see any increase in their pay at all. The unions are therefore demanding not only a change in the structure of the pay scales but also a real increase in total salaries. They also criticize the possibility of “transferring” part of the personal bonus into the pay scale, because an employee could then have a higher fixed portion of their salary without their total income changing significantly.
Specific pay scales were discussed with social partners on October 19, but these amounts have not yet been definitively approved. The government will have to establish the final form of the pay scales by decree, and some of the related changes to compensation are still going through the legislative process. The ministry expects the new system to take effect on January 1, 2027.
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