Spain plans a 2% pay raise for all civil servants
- Tech lifts S&P 500, Nasdaq amid inflation, China growth worries
- Zillow (ZG) Stock Falls on Report Company Paused Home Purchases due to High Demand, a Temporary Halt Yields a Chance for Competitors Says Analyst
- Oil prices ease off highs as U.S. factory data weighs on market
- Chip Shortages are Increasingly Becoming a New Bearish Risk, Inflation Bearish for Consumer Electronics - TFI's Kuo
- Walt Disney (DIS) Stock Slips as Barclays Downgrades Amid Disney+ Growth Slowdown
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
By Belén Carreño and Inti Landauro
MADRID (Reuters) - The Spanish government plans to give all civil servants a 2% pay raise in 2022 to help their wages keep pace with rising consumer prices, a source at the budget ministry said on Tuesday.
The pay increase will have to be ratified by the full cabinet and then by parliament before the end of this year as part of next year's government budget bill.
Flash data from statistics institute INE last week showed the 12-month inflation rate hitting a 13-year high of 4%.
The government says the rise in prices is transitory but the Bank of Spain has warned of second-round effects, such as wage hikes, that could make inflation persist.
Spain's minimum wage was raised by 1.6% in September and the government plans further increases for 2022.
Public pensions are meanwhile due to be increased on Jan. 1 to match the average 2021 inflation rate, which experts estimate will be around 2.8%.
The Socialists and radical left party Unidas Podemos, which comprise the ruling coalition, agreed a budget draft on Tuesday after weeks of bickering, having eventually found common ground on housing, the most disputed issue.
(Reporting by Belen Carreño and Inti Landauro; Editing by Catherine Evans)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Record haul of cocaine seized from sailboat off Portugal's coast
- Russia's Nornickel urges scientists to find new ways to use palladium
- Amazon to hire 150,000 U.S. workers for holiday shopping season
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!