Serbian side proposes 10% higher civil servant salaries in talks with IMF

According to the proposal coming from the Serbian government, doctors, police, and primary and high school teachers will be getting 10% higher salaries, while the salary of other public sector employers would go up by about 8%.

For example, a teacher, who now earns an average of 40,000 dinars a month, would be getting 44,000 dinars after the hike. A specialist doctor would have had 80,300 dinars instead of the current 73,000, and the salary of the police inspector would be 51,700 dinars instead of the current 47,000 dinars.

The Serbian Finance Minister, Sinisa Mali and the head of IMF delegation, James Roaf, will discuss the issue of the increase in public sector wages. According to the Blic, the IMF proposes a slightly smaller increase, between 6% and 7%.

“However, the arrangement we are now negotiating differs from the previous one because it has an advisory character. We are not obliged to do what they (the IMF) proposes, which was the case in the previous three years,” explains Blic’s source from the government.

On the other hand, prior to a meeting with Minister Mali, James Roaf said that the growth of salaries and pensions should be linear.

 “The salary increase is possible, provided the economy continues to develop, that is, the fiscal stabilization and the arrival of foreign investors continue. If these trends continue, then we can expect an increase in salaries,” Roaf told B92.

Although the increase in public sector wages is still in the domain of speculation, it will probably take place as of January 2019.  The exact calculation of how high public sector wages should be will be done in autumn, when the new budget is being devised. Also, pensioners can expect higher pensions following the abolition of the Law on Temporary Income Reduction.  

The Fiscal Council of Serbia has recently presented an analysis of the increase in salaries and pensions, which, according to the Council, should go up no more than 6%. They warn that any increase above would lead to an unsustainable growth of the share that state expenses have in the national GDP. The Fiscal Council also suggests that increase in salaries of healthcare workers should be the highest, while the hike in police salaries should be the lowest.

(, 13.06.2018)

This post is also available in: Italiano

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