Govt: Salaries in agencies to be in line with rest of public sector

Employees in state agencies will in future have their salaries calculated according to regulations applied to public services, in keeping with guidelines to be discussed by the government on Thursday with regard to plans to streamline the system of agencies and institutes and other legal entities with public authority.

The guideline is in line with government announcements on Monday as part of Croatia's additional austerity measures presented to the European Commission as its efforts to curb its excessive deficit.

A set of measures should yield a fiscal effect of 0.63% of GDP or HRK 2.09 billion which is more than the 0.40% that Brussels had set, according to EU Funds Minister Branko Grcic and Finance Minister Boris Lalovac.

The government expects a saving of HRK 500 million by reducing the business expenses in state agencies.

The government plans to have a say on decisions on salaries in agencies, even those independent agencies which would be brought in line with the rest of the public sector.

The government also sees an opportunity to reduce costs through merger of agencies.

(Hina) sp

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