IMF agrees to increase in public sector wages

Serbian Finance Minister, Sinisa Mali confirmed that civil servants will get a pay raise from 7 to 12 per cent as of next year, adding that the IMF providing that the IMF agreed.

Previously, the Fiscal Council’s remarked that the announced increase was not justified and realistic, as wages in the public sector grow twice faster than those in the private sector.

“I respect the opinion of the Fiscal Council, but the IMF has agreed to this increase. I believe it is absolutely realistic to have this rise”, Mali told TV Prva.

He also thanked the pensioners who, as he said, have carried the biggest burden of reforms over the past few years.

“This is the moment when fiscal consolidation ends, when public finances have stabilized and when citizens of Serbia get back a portion of those savings”, Mali added.

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The Minister of Finance also said that the budget for 2019 is aimed at boosting the living standard of Serbian citizens. When asked how he did plan on doing that, Mali said that a lot of funds were allocated to increasing salaries and pensions.

“We have 35 billion dinars more for pensions in the next year,” Mali says.

He reminds that, compared to October 2014, pensions grew between 8 and 13 per cent.

Mali also adds that as of January 1st next year, the 7 to 12 per cent increase in civil servant salaries will provide an additional 33 billion dinars for the next year’s budget.

He also noted that the minimum wage has been increased to over 27,000 dinars and that that measure will also come into force as of January 1st the following year.

Mali underlines that more of the 2019 budget is allocated for capital investments, i.e. 220 billion dinars which is 30 per cent more than this year.

“This money is allocated to projects such as the construction of the Morava corridor, the Pozega-Preljina motorway, the completion of the bypass around Belgrade, the construction of the Surčin-Obrenovac road and similar”, Mali adds.

The minister says that the Serbian Parliament is not only going to discuss the budget for 2019 but also 28 tax laws that are closely related to it, including the ones related to reducing salary tax.

(RTV, 28.11.2018)


This post is also available in: Italiano

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