Salaries to be increased in January 2011 by 2%

The Serbian government adopted a Conclusion on the basic elements of an agreement between the government and the IMF as part of the sixth review under the stand-by arrangement.

The basic elements of the agreement are the following: the budget deficit in 2011 will stand at 4.1% of GDP and the budget for 2011 will envisage the indexation of pensions and salaries in the public sector in January 2011 by 2%, while all future indexation will refer to April and October pensions and salaries, it is announced on the government's website.

The agreement also envisages freezing subsidies at the 2010 level and an increase in the transferred funds to local self-governments of around 25%, compared to the level established in the 2010 budget.

Also, a Bill on amendments to the Law on pension and disability insurance, which the government will forward to the parliament, stipulates that the minimum pension must not be below 27% of the average salary and that the beginning of the application of a gradual increase in the required years of service for retirement for women will be postponed from 2011 to 2013.

Vlada Republike Srbije

Međunarodni monetarni fond-MMF Beograd

Government of Serbia

International Monetary Fund

IMF

budget deficit in 2011

salary increase in public sector

pension increase

Law on pension and disability insurance