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Unite’s Reaction to the Chief Minister’s Budget Address “Mainly Positive”

30 June 2025
Unite’s Reaction to the Chief Minister’s Budget Address “Mainly Positive”

 Unite the union has today viewed the Chief Minister’s announcement as “mainly positive.”

A statement continued: “In relation to the Public Sector Pay increase, Unite welcomes that all Public Sector employees shall receive a pay rise. Unite had advocated for there to be no cap and is happy that this element of the claim has been achieved, albeit through a gradual approach. Public Sector minimum entry salary is set to increase and Unite welcomes this aspect of the address also.

“However, in terms of the percentage offered, it falls below what members were expecting. The banding element of the announcement is also a point that the members would have wished not to see, as it erodes salary scales and brings them closer together. This consequently brings problems when seeking promotions, as at times, the salary might not compensate for the increased responsibility.

“Turning to the other elements of the announcement, Unite welcomes that there has been no increase in Tax and no reduction in the subsidy for water and electricity. This means that any increase is not immediately reduced by other costs as has been the case in the past. Although there will be an increase in Social Insurance through the increase of the minimum and maximum caps by 5%, and an increase to license fees, overall, the increases have been modest in relation to previous years which is positive.

“As was seen in Unite’s pay claim, it advocated for HMGOG to commit to creating the Gibraltar Living Wage Commission which would set out what the minimum income would need to be for someone living in Gibraltar. Unite is glad to see the Chief Minister commit to this long-standing request and hopes it can go a long way to improve the lives of average Gibraltarians, by providing a benchmark income which employers should work towards. This would also highlight the potential low minimum wage when compared to the cost of living, which has gone up considerably. Finally, a commitment by HMGOG to look into the abuses of zero hours contracts, is yet another positive aspect of the address which Unite had long been pushing for. To this end, Unite believe legislation is necessary to end the potential for abuse which is quite rampant in the private sector.”

Donovan Correia Unite Regional Officer stated “Overall, this budget address has been a mostly positive one. Some aspects of our pay claim have not been met and our public sector ballot which begins tomorrow, is the opportunity for our members to have their say on the announcement.”

 “What I am pleased to see, is that the private sector aspects of our pay claim, have been mostly addressed, and it means positive steps forward for our private sector membership. We would hope that HMGOG continue delivering in this regard as the private sector also deserves to have adequate terms and conditions.”