IMF objects to higher pensions

The IMF could give the green light to a slight increase of teachers’ salaries and possibly the salaries in the healthcare sector while maintaining that the state administration, military and police have solid salaries.

Although, the International Monetary Fund (IMF) has been praising Serbia for the results achieved through fiscal consolidation while also acknowledging that Serbia’s economic recovery has surpassed all of their expectations, they are not willing to consent to higher pensions and salaries for state administration during the talks with the Serbian officials relating to the sixth review of the stand-by arrangement.

Several sources have confirmed that the IMF is very much against higher pensions, although they are willing to give the green light to a one-off disbursement to those pensioners whose pensions are lower than 23,000 Dinars prior to the New Year holidays. The amount has not been determined as yet but it could range between 5,000 and 7,000 Dinars. The IMF also says that pensions could be increased only in late 2017.

In regard to civil servant salaries, the IMF has consented to a slight increase of salaries in the Serbian education sector and maybe health sector by around 2% while maintaining that the state administration, military and police all have solid salaries and that, in some cases, they are even overpaid. The IMF has underlined that the said hike should be sustainable over the period of the next few years.

(Politika, 24.10.2016)

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