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Cyprus Finance Ministry has many open fronts

February 12, 2020 at 8:25am
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The Ministry of Finance intends to pay contributions revised retrospectively from 2011 to provident funds of new employees to the public service and the wider public sector, Phileleftheros reports.

These employees have not been included in a pension plan since 2011. Based on memorandum bills, newcomers recruited since 2011 are not included in a government pension plan.

A Finance Ministry source said discussions on this with stakeholders were held but not concluded as yet. The source also said the Ministry has expressed readiness to retrospectively pay contributions from 2011.

In addition, the government has plans for a total of 5,000 employees on an indefinite duration contract to become permanent, although the Treasury considers this a legal challenge and will ask an opinion from the Attorney General’s Office.

The same source said the provision which prevents indefinite duration employees from climbing up the scale is wrong and should be corrected. Gradually, the benefits of these employees are getting restored, the source added. State financial analysts believe no additional budgetary costs will be recorded since indefinite duration employees will replace permanent positions in the government.

Relevant proposals have been submitted before Parliament by ruling Disy, centre Diko and the Solidarity Movement which, however, are confronted with constitutional obstacles. The proposals will be discussed again in the presence of the Attorney General before the end of this week.

In addition, Finance Minister Constantinos Petrides is expected to meet with the leadership of the union of public servants (Pasydy) to discuss, among others, the thorny issue of public service reform bills.

Pasydy disagrees with the provision on promotions within a department to be the result of an evaluation at examination centres. Pasydy believes that inter-departmental promotions will deregulate the Public Service and create many problems.

On the other hand, the Treasury does not agree with the removal of this provision since the bills will be weakened. In 2015, Pasydy had agreed to this provision, according to informed sources.

 

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