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The Government of the Republic of Serbia

In the service of citizens

Lump sum and salary increase for employees with budget-funded salaries

Belgrade, 9 April 2008

Serbian Minister of Health Tomica Milosavljevic and Serbian Minister for Public Administration and Local Self-Government Milan Markovic stated today that in April employees with budget-funded salaries will receive a lump sum and a salary increase of between 3% and 5%.

From left: Janko Guzijan, Milan Markovic and Tomica Milosavljevic

Milosavljevic and Markovic said at a press conference that employees in the health and education sectors will receive a lump sum of RSD 3,000 and a salary increase of 5%, while employees in public administration, territorial autonomy and local self-government will receive a lump sum of RSD 5,000 and a salary increase of 3%.

Markovic said that employees working in culture will receive a lump sum of RSD 5,000, and voiced hope that the proposal on salary increases and lump sum payments will be adopted tomorrow at the government session since it does not jeopardise the stability of the Serbian budget.

He said that a decree on increasing coefficients of salaries to workers in local self-government and territorial autonomy by 6.6% and the base salary by 2% should be adopted at tomorrow’s government session.

Milosavljevic explained that the initiative to increase salaries and allocate lump sum payments was put forward at the meeting which President Boris Tadic held with union representatives and is aimed at alleviating the social consequences of the price hike in the market.

The initiative also relates to private employers who should thus be encouraged to award their employees before the Easter holidays, said the Minister and announced that a competition for 1,000 flats for employees in the health sector will be announced by the end of the month.

According to him, there are around 110,000 employees in the health sector, and the salary increase will affect more than 120,000 employees in the education sector, 22,000 people employed in local self-government and another 40,000 who work in public administration.

State Secretary of Finance Janko Guzijan noted that RSD 500 million has been set aside for this announced salary increase, which makes up 0.5% of the total RSD 200 billion intended for salaries in 2008.