High Court Ruling on Return of 13th, 14th Salaries to Civil Servants Pending

Alawsuit by the civil servants’ union (ADEDY) and individual petitioners to retore a so-called “13th and 14th” monthly paycheck to wage-earners in Greece’s wider – and vast – public sector was finally concluded this week during a plenary session of the Council of State (Cos), the country’s highest administrative court.

The very closely watched decision is expected to have a case law-effect in the country due to the gravity of the matter.

The first bailout from institutional creditors sought by Greece in May 2010 had resulted in the first eliminations of the two extra months of pay, with subsequent cuts coming up until 2012. The extra two monthly salaries had been doled out around Easter (usually in the springtime – half a month), then again over the summer (another half month’s pay) and an extra full month’s pay before the Christmas holiday. The measure was first instituted in 1951 as a way of stimulating the retail markets before the major holidays and summer leave.

The extra two months of pay, however, remain for private sector wage-earners.

The main arguments cited by plaintiffs are the constitutionally guaranteed equality before the law – in this case, between private and public sector employees – the implementation of certain Community directives and what they refer to as the ability of civil servants to “live with dignity”.

Arguments

Conversely, attorneys for the state argued that not restoring the extra payments does not violate constitutional provisions, as civil servants and public sector workers enjoy remuneration within a special regime and comprise a different category of wage-earners, compared to the private sector. Additionally, the state maintains that enacting and abolishing the measures lies with the legislative branch.

A ruling is expected soon.