Higher pensions and civil servant salaries in 2021, despite the crisis

Following the last meeting of the Serbian government with the IMF mission a decision was made that pensions and civil servant salaries will go up in 2021.

Half a million citizens employed in the public sector and about 1.7 million retirees should expect higher income from January. Approximately 350,000 people who are on the minimum wage will also see higher income.

Serbian President Aleksandar Vučić said he insisted with the IMF for civil servant salaries to be raised, adding that Serbia would be the only country, not only in the region but also in Europe, to raise salaries despite the crisis.

“The IMF was against salary and pension increase as they are cautious and sceptical, but we have insisted and shown that we have enough leeway (in the budget) to raise salaries in the public sector, ”Vučić said, adding that there is also room to increase the state budget.

Finance Minister Siniša Mali confirmed that the budget for 2021 will allocate more money towards civil servant salaries and pensions.

And while more precise information is yet to be revealed on how much salaries in the public sector will go up, it is already known that pensions will grow by 5.9%. At the same time, the minimum wage will be 6.6% higher and instead of 30,000 dinars, this year, it will amount to 32,126 dinars.

More concrete information on wage increases in the public sector should be expected in the next ten days.

In November 2019, salaries in the public sector increased on average from 8 to 15%. Salaries of nurses and medical technicians recorded the highest growth – 15% – while doctors, science and culture workers received a 10% increase each.

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Teachers and other education professionals, judges, prosecutors, employees of courts and prosecutors offices, as well as social workers and members of public services and security forces received a 9% increase. Civil servants saw their salaries rise by 8%.

The salaries of all health workers were again increased in April of this year, amidst the coronavirus pandemic, by 10%.

All public company employees received a 5% higher salary in 2019.

In 2021, after the announced increase, the average pension will go up from the current 27,769 dinars to 29,407 dinars, or 1,638 dinars more.

Pensions will grow next year according to the Swiss formula, which implies the adjustment of pensions with inflation (50% of the inflation rate) and average wage growth (also 50% of the average wage).

(Blic, 15.10.2020)

https://www.blic.rs/biznis/vesti/veca-primanja-za-25-miliona-ljudi-u-srbiji-povisice-izvesne-za-tri-grupe-gradana-neko/jxqjbeh

This post is also available in: Italiano

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Salaries in the public sector 20% higher than in the private sector

Minimum wage in 2021 will be 32,126 dinars; up 6.6%

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