Speaking during the budget debate, the Finance Minister addressed the ability of municipalities to pay wages and salaries. "Next year's budget already has an additional 220 million euros built in. This is quite a normal state subsidy addition for the municipalities, which will assist their ability to pay salaries," said the Finance Minister.
According to Katainen, government will grant full index increases for the first time.
"This means that for future pay increases, as well as increases under negotiation, there will be 250 million euros in addition to the previously mentioned figures and also in addition to 150 million euros for gender-based increases. Municipalities have not been left alone," he added.
Municipalities have been embroiled in work contract negotiations with labour unions, who have demanded enhanced pay packages. Three unions representing municipal workers have said they are prepared to accept the current offer of 11 percent increases over the next two years. However, the two unions representing nurses are still considering the latest offer of 12 percent over the same period.
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