Finance Minister Kikis Kazamias and the main trade unions – PEO, SEK and PASIDY – have agreed on a freeze on the adjustment in the cost of living allowance (CoLA) for employees in the public and the broader public sector.

They have also agreed that CoLA should continue to be paid to workers in the private sector.

During today’s meeting at the Ministry of Finance, Kazamias said the social partners and the government agreed that the adjustments on the CoLA will freeze until the end of 2013 in the public sector but will continue to be paid, as normal, to workers in the private sector.

He said that he is preparing the proposal on the second package of austerity measures, set to be tabled to the House on Thursday.

Kazamias said the government will put forward proposals to help reduce the public deficit through measures which would affect the wealth.