A Belgrade newspaper says that the Serbian government asked the IMF to approve higher salaries for the public sector but that they failed to agree on how much to raise those salaries.
Blic daily said the proposal to raise public sector salaries by 8 to 10 percent was made in talks between Finance Minister Sinisa Mali and IMF delegation chief James Roaf.
According to the newspaper, the Serbian government wants to give doctors, the police and school teachers a raise of 10 percent while the rest of the public sector would get a raise of 8 percent while the IMF proposed raises of 6 to 7 percent respectively.
Finance Minister Mali told N1 on Wednesday that the law temporarily reducing pension would be abolished by the end of the year, adding that the exact level to which pensions would be raised will not be known until September at the insisting of the IMF. “Salaries will also be raised and the exact percentages will also be known in September,” he said.
IMF delegation chief James Roaf said there is room to abolish the reduction of pensions and introduce a new salary system in the public sector but warned that the share of the pensions and public sector salaries in the GDP cannot grow.