For those working in state-owned capital companies, salaries should also be scrutinized, Valenis said.

“We also have to look at state-capital companies,” Valenis said of the wage restrictions.

He stressed that the issue has not yet been discussed in the alliance, but “we will have to think about how to use our resources more effectively in state-owned capital companies.”

Public sector wage growth will be capped next year, with a total rise of 2.6% currently being proposed, the finance minister told reporters after a meeting of coalition parties on Monday. Avir Ashraden (joint venture).

Ashraden said the government was actively working on the national budget and as part of that process hoped to gain the backing of the cabinet of ministers on Tuesday to cap compensation funds across the public sector next year.

It is expected that the pay rise may be limited to 2.6%, which will also apply to political officials, including MPs and ministers.

At the same time, Ashraden noted that if the government supports limiting public sector wage increases, then a lot of work needs to be done to identify exceptions to limiting wage increases.

The minister stressed that expenditures across the national administration must also be reviewed. For example, savings can be achieved through reductions in stationery costs and the cost of various services. Ministries are currently reviewing their expenditures.

Economy Minister Victors Valenci (ZZS) stressed that the meeting reached an agreement that the state administration should be downsized.

“A common outline has been agreed upon,” Valenis said, noting that discussions would still be held on whether remuneration policies should be reviewed, for example in state-capital companies.

Former Prime Minister Evicka Silinas (JV) said the government still needs to decide on public sector wages as it should no longer increase at the previous rate.

Previously, according to information on the Cabinet website, the basic salary of elected and appointed state officials is expected to increase by 6% in 2025 – from 1,205.71 euros this year to 1,278.05 euros next year.

According to the Law on Remuneration of Officials and Employees of National and Local Government Bodies, the monthly salary of elected officials and officials appointed by the Parliament is determined based on the monthly basic salary and the application of a coefficient. The calculation of the basic monthly salary is basically based on the increase in the national average salary and is recalculated once a year.

For the highest state officials – the president, speaker of the parliament, prime minister, president of the Constitutional Court and president of the Supreme Court – the coefficient “seven” is applied to the calculation of monthly salaries, i.e. the maximum total monthly salary of these officials in 2025 will be 8,946 euros, compared to 8,440 euros this year.