The Fiscal Council has repeatedly raised the topic of the privileged treatment of civil servants, military personnel, police officers and magistrates with regard to their insurance contributions. The privilege of assuming full insurance contributions by the state is a remnant of the time when civil servants were not well paid. To date, this privilege is rather unfair to other employees in the state administration (on an employment contract) and employees in the private sector. There is no economic logic in some employees paying personal insurance contributions and others not paying.
This is stated in the position of the Fiscal Council.
In our recommendations for optimizing personnel costs in the 2026 budget, we proposed the cancellation of this privilege back in the fall, with the goal being to achieve fiscal consolidation in addition to eliminating the unnecessary privilege.
According to our calculations, the insurance contributions paid for civil servants, including those in the judicial system (excluding those under the Ministry of Internal Affairs Act), amount to 200 million euros, i.e. the fiscal effect for the budget will be about 100 million euros. less insurance contributions. Including police officers and military personnel in the scope of the measure will have a much greater fiscal effect, since the state currently pays 73.3% of insurance contributions.
Art. 74 of the Draft of the State Budget and Budgetary Accounts Act for 2026 provides that from 01.08.2026, civil servants and magistrates will bear part of their social security contributions in a ratio of 20/80, and from 01.01.2027, the ratio will become 40/60 and be equalized with other employees in the private sector.
The Fiscal Council supports the government's intention to equalize the social security burden for civil servants and magistrates with other employees in the economy, but believes that in the scope as of 01.08. both the military and the police should be included so that there is no dual regime and opposition between employees by sector.
We also believe that the government should take advantage of the change in the social security regime to achieve fiscal consolidation and reduce to some extent the already overly inflated personnel costs.
Moreover, it is precisely in these two sectors, which remain outside the changes for now, that salaries were drastically increased last year. This is why the Fiscal Council does not believe that compensation should be provided to cover the personal social security contributions of those affected by the change.