Agreement between Government and trade unions - Minimum pension to amount to 27% of average salary

Representatives of five trade unions and the Government of Serbia reached a compromise on Friday on disputable articles in the Law on Pension and Disability Insurance.

The Government and trade unions agreed to observe the ratio between pensions and salaries over the next two years and to start negotiating again to determine how to eliminate the created imbalance if the average pension falls below 60% of average earnings. Upon the expiration of the period of two years, they will negotiate again on the new ways of harmonization of salaries and pensions.

The agreement also specifies that the minimum pension cannot be less than 27% of the average salary, the enforcement of the planned change in the retirement age for women is postponed until 2013, and the Government also promised to change the relevant laws or regulations to solve the problem of about 6,000 employees who are redundant and are unable to exercise their right to a pension.