The Fiscal Council warns: Increase in salaries in the public sector too high

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    The Fiscal Council warns: Increase in salaries in the public sector too high

    Chairman of the Fiscal Council Pavle Petrovic has evaluated that next year’s increase in salaries in the public sector dis not in line with increase of country’s economic strength, B92 reports.

    “In essence, increase in pensions corresponds to growth country’s economic strength. Salaries in public sector are once again increased beyond justification. Net salaries in public sector will increase by 9 percent, increase in private sector will be half of that, around 5 percent. That happened in 2018 and that is planned for 2019 as well,” Petrovic stated with Prva TV station.

    Such increase in salaries in the public sector is too high, he evaluates.

    “What is not good is that too much has been set aside for pensions and salaries in relation to public investments, thus you are undermining country’s economic growth. Why would salaries in public sector increase twice as fast as they grow in the public sector? In private sector salaries are determined on the market, in proportion to growth of productivity,” Petrovic says.

    Pointing out that net salary in the public sector will increase by 9 percent, Petrovic says that the overall salary increase should not exceed the growth of the economy, i.e. about 7 to 7.5 percent.

    “Such math originated from the above mentioned, ban additional employment, number of employees will decline subsequently and that is not good. Such measure is a desperate one, this has been ongoing for 6 to 7 years, thus classification needs to be done, in order to determine how many people are needed and at what positions. Number of employees is decreasing because they are retiring, but they are retiring in places that are critical. Between two to three thousand people are needed in healthcare, inspections need more people and soon their very functioning will be jeopardized,” Petrovic says.

    When asked about yet another delay of the introduction of pay levels, Petrovic has said that this has begun in 2014 and it is not an easy job, but that does not justify the fact that this cannot be completed for five years.

    Izvor: B92/TV Prva

    Foto: Beta

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