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The Government of the Republic of Serbia

In the service of citizens

Draft law on maximum number of public administration employees adopted

Belgrade, 9 October 2009

Serbian Prime Minister Mirko Cvetkovic said that the government today adopted the draft law on the maximum number of public administration employees. Under the draft law the number of employees will be cut by 3,400, of which 2,800 will be permanent employees and 600 contract employees.

Mirko Cvetkovic, left, and Mladjan Dinkic at today's press conference

Author: Fonet

Speaking at a press conference, Cvetkovic said that the law will affect employees in various ministries, special organisations, government departments, agencies and also the Pension and Disability Insurance Fund and the Serbian Directorate for Health Insurance.

He confirmed that a recommendation was adopted according to which a reduction of state secretaries and other appointed officials will be considered.

The Prime Minister added that the government also adopted an action plan to solve the redundancies of workers in the judicial system by offering them a social welfare programme.

Under this programme, up to 2,500 employees will be able to take severance payments.

Cvetkovic said that the adoption of the draft law on the maximum number of public administration employees and steps to reform the public sector will give Serbia good grounds for negotiating with the IMF on October 20. He said that Serbia will continue negotiations with the IMF on the basis of figures that have been established already, adding that according to these the budget deficit will be 4% of the GDP next year. He said that now it is necessary to determine all details and to reach agreement concerning priorities for the 2010 budget. Responding to the question whether the Serbian government is planning to reduce the number of ministries, Cvetkovic said that public administration reform will be more thorough than just reducing the number of ministries. We should strive to create an efficient state with a well organised public sector and we shall accomplish this goal by means which will not jeopardise our stability, said the Prime Minister, adding that he does not expect strikes and protests in reaction to public administration personnel reduction.

The draft law on the maximum number of public administration employees has been prepared in cooperation with trade unions and its ultimate aim is to reform the public sector, reiterated Cvetkovic.

He confirmed that the preparation of the bill on the transfer of jurisdictions to the Autonomous Province of Vojvodina is near completion and that it will be on the agenda of the government very soon.

He added that the bill and the Vojvodina Statute are expected before the Serbian Parliament soon.

He said that proposals were adopted which concern the opening up of competition for the fixed line phone network which will make it possible to have new providers, adding that it was also decided to separate the broadcast tower services department from the state radio and television RTS and to form a separate company for this purpose.

Cvetkovic commented on a meeting in Butmir near Sarajevo where EU and US representatives met with representatives of seven parties from Bosnia-Herzegovina to discuss the future of Bosnia-Herzegovina by saying that Serbia respects Bosnia-Herzegovina’s territorial integrity and will accept every agreement that the three reach.

He added that a solution acceptable to all needs to be found.

Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic stated that the maximum number of workers in public administration will be 28,400.

This regulation excludes employees of the Interior Ministry, Defence Ministry, the Security and Intelligence Agency and the Directorate for the Enforcement of Penal Correctional Sanctions. The government also decided to cut the number of state secretaries by more than 10%, Dinkic said. The data on the number of employees will be available on ministry websites, while the Finance Ministry will publish the total number of public administration employees, he added.

Dinkic announced that as of the New Year the Serbian Directorate for Health Insurance will be solely in charge of registration of workers, while at the moment there are three institutions where employers need to go to register their employees.

He also announced that a regulation cutting the administration in local governments will be passed soon, which the government might examine in its next session on October 15.

Dinkic specified that currently there are 30,624 full-time employees in the state administration and 3,400 workers whose employment is contract based.