The compensation policy that reigns for private sector managers cannot be followed in the public sector, because taxpayers are funding the latter. Since 2009 the Tribunal de Cuentas has been fighting exorbitant salaries of managers at benefit societies (organizations also known as mutual aid societies that are designed to offer ad hoc help or relief to those who need it) and healthcare programs. These salaries are up to five times what Prime Minister Rajoy makes annually, and they are paid through taxes on workers and companies.
A small effort to cap manager pay in 2010 was insufficient. The measure only affected managers hired after it went into effect (they were not allowed to make more than a Director General of the Social Security system) while tenured managers were able to keep the same salaries.
Public sector reforms should change all areas of government that need it, and it is a good thing that the Labor Ministry is tackling this thorny issue despite strong pressures from important government officials who want to keep their cushy paychecks.
