site.btaCabinet Greenlights Indexation of Salaries in Government-Funded Organizations

At its regular sitting on Wednesday, the Council of Ministers adopted a decision to index by 5%, as of January 1, 2026, the salaries of workers and employees in government-funded organizations. The decision ensures the implementation of provisions of the 2025-to-2026 Revenue Collection and Expenditures Act, State Social Security Budget Act and the National Health Insurance Fund Budget Act – the so-called 2026 Budget Extension Act, as these relate to the indexation of remuneration in state-funded organizations.

Based on information provided by the National Statistical Institute, it has been determined that for the purposes of applying Article 3(2) of the Budget Extension Act, the accumulated annual inflation as of December 31, 2025 stands at 5.0%.

In applying the provisions, the base monthly salaries in budget-funded organizations as of December 31, 2025, may neither be reduced nor increased. In other words, no statutory acts or other mechanisms for pay increases will apply, except for the explicitly provided increases under the extension act – namely, an increase in salaries for employees receiving the minimum wage and a one-off indexation equal to the accumulated annual inflation as of December 31, 2025, amounting to 5.0%, for all other employees in the public sector.