Gov't proposes scrapping pay bonuses for public service employees until year's end

Following a conference call on Thursday, the government proposed amendments to two bills cancelling pay supplements and Christmas and holiday bonuses for public service employees until the end of the year.

Public service employees with 20, 30 and 35 years of service will be denied pay increases of 4, 8 and 10 per cent respectively. The move will save 300 million kuna in the state budget, which is Croatia's obligation under the European Semester and the programme of measures to correct the excessive budget deficit, the government said in a press release.

The government said it had decided to propose cancelling Christmas and holiday bonuses because it had failed to reach an agreement with the trade unions. The move will save about 350 million kuna in the state budget and will put public service employees on par with state administration employees, whose unions have renounced Christmas and holiday bonuses until 2016 in negotiations with the government.

(Hina) vm

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