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Constitutional Court Strikes Down €240,000 Public Salary Cap

It restores pay limits to the First President of the Court of Cassation’s €313,080 remuneration, requiring future ceilings to be set by a prime ministerial decree with parliamentary committee oversight.

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Overview

  • The Constitutional Court ruled that fixing the public sector salary cap at €240,000 breached constitutional proportionality once its temporary crisis justification expired.
  • As of the day after publication in the Official Gazette, the cap will return to the compensation level of the First President of the Court of Cassation, currently €313,080 gross annually.
  • Any new salary ceiling must be set by a prime ministerial decree following prescribed consultation with parliamentary committees.
  • The court’s declaration of unconstitutionality has no retroactive effect, so past salary reductions remain unchanged without back pay.
  • The judgment underscores the need for a proportional and periodically reviewed compensation framework to safeguard judicial independence.