The Finance Ministry is moving ahead with targeted interventions to reshape the public service, aiming to boost efficiency and contain costs, with changes to recruitment procedures already announced and broader reforms on the horizon.
Finance Minister Makis Keravnos has repeatedly set as a priority the rationalisation of the public payroll and the creation of a modern, effective administration capable of delivering with professionalism and consistency.
Changes to recruitment system
On Thursday, it was announced that no written examinations will be held in 2026 for entry-level public service posts to be advertised in 2027.
The Council of Ministers approved draft laws prepared by the Finance Ministry to modernise the process for filling entry-level posts, making it more rational and effective and addressing long-standing issues in the current system.
A key reform under the bill titled the ‘Assessment of Candidates for Appointment to the Public Service Law of 2026’ provides that general written examinations will be held after vacancies are announced each year rather than in advance, as is currently the case.
The change is intended to make the process more targeted and aligned with staffing needs. It will also allow exam content to reflect the specific requirements of the positions on offer, while enabling candidates to decide whether to sit the exams based on actual vacancies for which they are qualified.
A separate bill, the ‘Assessment of Candidates for Appointment to the Public Service (Temporary Provisions) Law of 2026’, provides for the suspension of written examinations in 2026 so that exams can be scheduled after vacancies are announced in 2027.
The reforms will not affect the filling of posts in 2026.
Wider reforms
In its Fiscal Policy Framework, the ministry notes that modernising the public and wider public sector forms part of broader public finance management.
It argues that the structure of the public payroll, along with existing promotion, mobility and performance management systems, affects competitiveness and productivity.
Reforms currently under way aim to ensure fiscal sustainability by containing the growth rate of the public wage bill and implementing policy to cover permanent needs through permanent staff rather than fixed-term employees.
Employment policy will continue to focus on keeping overall staffing levels in the public and wider public sector under control, in line with economic growth and fiscal sustainability objectives.
Among the measures under consideration is a comprehensive review of the public payroll, if necessary with independent experts, focusing on:
- evaluating its current structure and composition
- identifying best practices from other countries
- addressing any distortions or shortcomings
- simplifying the system
- ensuring long-term fiscal sustainability
Staff mobility
The ministry also highlights the use of staff mobility tools to meet staffing needs, including among hourly-paid employees.
It refers to the ongoing review of positions created under different conditions in the past, with a view to abolishing those no longer required and reassessing staffing structures across departments.
Measures are also being introduced to improve the implementation of the new performance evaluation system for public servants, linking assessments to career progression and aiming to enhance performance across all levels.
A new framework for evaluating and selecting candidates by the Public Service Commission for promotion posts is also being promoted, with the aim of choosing the most suitable candidates based on transparency and objectivity.
For interdepartmental promotion and entry-level promotion posts, greater weight will be given to performance in assessment centres, while for higher promotion posts emphasis will be placed on performance evaluation records.
Flexible work and parental leave
The ministry also points to the regulation of flexible work arrangements, including teleworking and reduced working hours of up to two hours per day for parents of children up to 15, carers and employees with disabilities or serious health conditions, with a corresponding reduction in pay.
Flexible working hours in the public service are also set to be extended from one and a half hours to two.
On parental leave, a circular signed by department director Elena Oikonomidou Azina clarifies that unpaid parental leave is not interrupted by weekends or public holidays if the employee does not return to work on the next working day.
‘Hands off acquired rights’
Public servants union PASYDY secretary-general Stratis Matthaiou welcomed efforts to modernise the state, noting that several of the measures reflect the union’s own proposals.
He stressed, however, that any discussion on rationalising the public payroll will take place in dialogue with the Finance Ministry and made clear that existing rights of public servants are not up for negotiation.
Matthaiou added that payroll reform is directly linked to the digital transformation of the state.
