Government worker salaries will remain frozen in 2012 due to budget deferments. This is one of the main consequences of Zapatero?s decision to advance elections to November 20, because it means the federal government will continue to use the budget it completed in 2011.
This year?s accounts incorporated the wage freeze for government workers, which was an important part of a fiscal adjustment plan in 2010 that was part of the government?s response to the Greek austerity plan. During the plan, the first wage cut in the history of Spain?s government was put into place with average cuts equaling 5% in the second quarter. Some highly-paid employees saw their wages drop by 15%.
The Real Decreto?s deferment of the 2011 budget process means that for the fourth time since 1994, government employees will receive the same pay in December as they did in January. This provision could be approved by the ministry advisor before the year ends, but it does not have to be ratified by Congress and, therefore, does not need backing from parliament.
