MALI: Adaptation of Swiss formula to be discussed with the IMF this October

Serbian Finance Minister Sinisa Mali has stated for Tanjug that one of the topics at the meeting with representatives of the International Monetary Fund (IMF) in October will be the adaptation of the Swiss model of a pensions increase, which entails the harmonization of the increase of pensions with the increase of salaries and the inflation.

Mali says that the Swiss model is the best possible model, protecting the interests of pensioners.

– In the next few days, we will know about the planned increase of pensions for the next year, considering that we are completing the analysis of the growth of salaries and the inflation by September – Mali said.

He also announces that the data will be publicly announced and that the Government of Serbia will come out with a proposition on the increase of the minimum wage for 2021.

– Regardless of the big problems with the functioning of the global economy, in Serbia, things are more or less normal. We are therefore aiming for an increase and I am sure that there will be an increase of the minimum wage and pensions for 2021 – Mali emphasized.

When asked whether there will be an increase of salaries in the public sector by the end of the year, Mali says that it is too early to say and that the data on the GDP inflow into the budget should be seen first in October.

– The budget inflows in June and July are better than expected and the same goes for the first half of August – Mali emphasized and added that the 2021 budget proposal would be ready in October as well and that it would be known then what the salary increase would be.

He points out that the state's priority is to maintain and raise the living standard in Serbia, as proven by the strong measures of support to the economy during the crisis, but emphasizes that responsibility is important and that the budget balance and the macroeconomic balance should not be upset.

The Swiss formula means that, for 1.7 million pensioners in Serbia, pensions are to be increased using the model which entails harmonization with 50% of the inflation and 50% of the average salary increase.

Ministarstvo finansija Republike Srbije

Vlada Republike Srbije

Međunarodni monetarni fond-MMF Beograd

Ministry of Finance

Government of Serbia

IMF

Sinisa Mali

Swiss pension model

pensions increase

Swiss formula for pensions increase

minimum wage

2021 budget proposal