Salaries in public sector to be adjusted in line with inflation

Serbian Minister of Finance Mirko Cvetkovic said that the Ministry today proposed that the Socio-Economic Council of the Republic of Serbia adjust salaries in the public sector in line with inflation next year and not to raise them beyond that rate.

Speaking at a press conference held after the meeting with Council members which dealt with macro economic policy of prices and salaries in the public sector, Cvetkovic said that the Ministry proposed that salaries remain within the pay freeze level, which is in accordance with inflation.

Serbian Minister of Finance Mirko Cvetkovic said that the Ministry today proposed that the Socio-Economic Council of the Republic of Serbia adjust salaries in the public sector in line with inflation next year and not to raise them beyond that rate.

Speaking at a press conference held after the meeting with Council members which dealt with macro economic policy of prices and salaries in the public sector, Cvetkovic said that the Ministry proposed that salaries remain within the pay freeze level, which is in accordance with inflation.

He explained that differentiation will be applied within the public sector, with the aim of harmonising and approximating salaries, and added that Council members agreed that this proposal is a solid base for further talks. At least two meetings should be held next week with representatives of trade unions.

The Minister said that public expenditure as percentage of GDP will be reduced by one percent next year, and the state budget will participate in public expenditure with less than 0.7 percent.

Cvetkovic said that the interim surplus in the budget for nine months of this year is RSD 37 billion and added that there is a possibility that this year will end without the planned budgetary deficit. The reason for that is a reduced level of expenditure, first of all in the field of the National Investment Plan.