GGCA Welcomes Public Sector Pay Deal And Raises Retirement Concerns

The GGCA has welcomed the public sector pay agreement but is calling for further clarification on the treatment of employees who retire after the framework begins.

A statement from the GGCA follows below:

The Gibraltar General and Clerical Association (GGCA) has welcomed the successful conclusion of a landmark public sector pay agreement announced by the Chief Minister, Fabian Picardo, during the 2026 Budget Address. The agreement represents a significant achievement for public sector workers, providing for the restoration of the 12.6% loss in purchasing power suffered between 2019 and 2025, together with a long-term framework for future annual pay awards.

The agreement delivers the recovery of the historic loss in purchasing power over a five-year period from 2026–27 to 2030–31 and establishes a future pay mechanism linked to inflation, plus an additional 1%, subject to a 4% cap, through to 2035–36. It also includes improvements to terms and conditions, including increased annual leave after 15 years’ service, a higher minimum entry salary across the public service, and the creation of a joint working group to review the Superannuation Pension Fund cap and pensionable allowances.

While welcoming the agreement, the GGCA has confirmed that it has already formally raised with the Government what it considers to be an important outstanding issue affecting employees who become eligible to retire after the implementation of the Cost of Living and Purchasing Power Recovery Framework on 1 August 2026.

The Association believes that employees who retire after the framework comes into effect should not lose the benefit of the remaining purchasing power recovery simply because they leave active employment before the five-year recovery period has concluded.

The GGCA has made clear that the purchasing power recovery element is fundamentally different from future annual pay increases. It is not a reward for remaining in employment, but a negotiated mechanism to restore an identifiable historic loss in the real value of public sector salaries suffered between 2019 and 2025.

Every employee who served throughout that period experienced the same erosion in purchasing power. In the GGCA’s view, those employees should receive the full restoration of that loss, irrespective of whether they retire after the framework begins.

The Association has formally asked the Government to ensure that employees who retire after 1 August 2026 continue to receive the annual purchasing power recovery element for the remainder of the recovery period, or that an alternative mechanism is introduced to guarantee they receive the full benefit of the negotiated 12.6% restoration.

The GGCA believes that failing to do so would create an unfair situation in which two employees who suffered exactly the same loss in purchasing power receive different levels of compensation solely because one happened to retire before the end of the recovery programme.

The Union considers that such an outcome would be inconsistent with both the purpose and the spirit of the agreement, which was negotiated to restore purchasing power lost over a defined historical period rather than to reward future service.

The GGCA remains committed to working constructively with the Government to resolve this issue and is confident that a fair and equitable solution can be reached that protects all employees affected.

The Association also thanked its members, particularly those who served on the GGCA Pay Deal Committee, for their patience, confidence and support throughout the negotiations. Special recognition was given to the GGCA negotiating team—Darren Cerisola, Wayne Acris and Lian Azzopardi—for their professionalism and commitment in securing one of the most significant public sector pay settlements in recent years.

The GGCA will continue to represent its members and work to improve their pay, pensions, terms and conditions, ensuring that the benefits secured through this agreement are delivered fairly to every employee entitled to them.