Pa

Local authorities: almost one billion for contract renewal 2025-27 with average increases of 135 euro

Sector committee's green light on 2025/27: more push for hourly flexibility and corporate welfare

by Gianni Trovati

Gaetano Manfredi, sindaco di Napoli, e Paolo Zangrillo, ministro Pubblica amministrazione

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

Less than three weeks have passed since the final signing of the 2022/24 contract for regions and local authorities, which will be felt from this month in the pay envelopes of the approximately 403,000 employees concerned.

But already the machine is fired up for the 2025/27 renewal, with the steering act approved by the sector committee.

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Numbers in play

On the table, the document sent to the Ministries of the Economy and the Public Administration details, are EUR 988.81 million, called to finance the new increases that Aran calculations measure at EUR 135.5 gross per month.

The news is obviously good news for the staff of Regions, Provinces, Municipalities, Metropolitan Cities, and Chambers of Commerce, who are getting on the train of renewals in the race to make up for the delays accumulated in the past to hit the target launched on several occasions by the Minister for the PA Paolo Zangrillo.
But it raises a few more uncertainties for local budgets, which will have to manage a new additional cost after the 983 million per year when fully operational requested by the 2022/24 agreement.

On this point, the picture has changed with the municipal payroll fund introduced by the last manoeuvre, with 50 million in 2027 and 100 from 2028. But the figures indicate that for the moment the novelty is important on a symbolic level, representing the first state funding for local payrolls, but slight on a practical level. It is an initial step, which the entities (and the Civil Service) aim to grow over time, but which will have to make its way through the many requirements of a public finance system characterised by narrow budget margins.

Negotiation priorities

Besides stating the figures, which are worth 329.6 million on 2025 and 659.2 million on this year before reaching the 988.81 million when fully operational as of 2027, the policy act sets the priorities for the negotiation between Aran and the unions.

These include corporate welfare, which for the sector committee 'assumes a fundamental role' in increasing 'the attractiveness of employment in a public administration'; a vital issue especially for local authorities, where average salary levels remain lower than in other public administrations and therefore the exodus towards better paid jobs is more intense.

In an attempt to reverse the trend, the guideline states, 'the role of national bargaining is decisive in defining the framework of the rules'; but it will also be necessary to intervene on financing, providing 'the option of supplementing the resources for supplementary welfare through the use of fund resources'.

A tug-of-war between local authorities and the Ministry of the Economy has been going on for a long time over the margins of corporate welfare funding, in a framework now modified by the Pa decree (Decree 25/2024) that allows those who have their accounts in order to release the ancillary wage.

And the discussion with the General Accounting Office could also be reactivated on the 'clear and uniform criteria for identifying the remuneration elements to be taken into account for holiday pay, distinguishing between items strictly related to the performance of duties and possible or exceptional items', another issue raised by the new guidelines. In the field of work organisation, on the other hand, one of the main demands is to push for flexibility to facilitate work-life balance, especially for parents and caregivers.

All Negotiations kick off

With the guideline act on 'local functions', defined a few days after the that on health care anticipated in Il Sole 24 Ore on 27 February, the framework of the 2025/27 negotiations on the civil service sectors is completed, since the negotiations on education started yesterday (article below) and those on ministries, tax agencies and non-economic public bodies will see a new episode today with the arrival of the figures for the increases for the table, between €119.6 and €208.8 per month depending on the classification.

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