“We shall achieve socially acceptable and fiscally sustainable reform of public sector salary system only by establishing a comprehensive information system which contains accurate and precise data on jobs, elements concerning employee salaries and other costs of work of public sector. This information system must be linked to the Catalogue of jobs and the existing coefficients at which salaries are paid in public services.  The proposal to postpone the reform until 2025 is caused by the need for a reliable analysis of its effects and data obtained from the new information system, on one hand, and stabilization of the epidemiological situation in the country, on the other,” the Minister of Public Administration and Local Self-Government. Marija Obradović, has said at the beginning of the cognate debate in principle on a set of laws proposing amendments in the field of salaries in the public sector until 2025.

She has pointed out that the reform of the salary system is formally under the jurisdiction of the Ministry of Public Administration and Local Self-Government and the Ministry of Finance, whose cooperation on this issue is continuous, so that all proposals are financially and fiscally sustainable. Obradović has recalled that, in the last year, the state was determined to commence with implementing the reform of the salary system from 2022; however, due to the complex situation caused by the COVID-19 pandemic worldwide, including in our country, it was necessary to focus all activities on supporting the citizens, economy and healthcare system, so the entire public administration was wholly functionally dedicated to the priority of protecting human life and health.

She has stated that in this fight, the inspection services, whose work is coordinated by the Ministry she is heading, gave their maximum contribution so that all the measures adopted would give their expected effect, while the Ministry of Finance was committed to strengthening the economy and raising the living standard of citizens.

“In conditions when citizens should know that they can rely on their state, we did not want to go into fiscally neutral reform, but to redirect the available funds to all citizens, as a measure of state support,” Obradović has said.

She has pointed out that the implementation of the reform of public sector salary system produces certain financial effects on the budget, and that the experiences of other countries, which have implemented such a reform, show that it is a long and complex process which must be accepted by those concerned, and which requires additional funds planned and provided by the budget.

Obradović has recalled that this year was not without work and activities which represent preparation for a comprehensive reform, and has cited continuous work on the Catalogue of jobs as the most important activity, which represents the basis for evaluating all jobs in public services, local self-governments and state bodies.

“We have completed the procedure for improving the Catalogue, which we plan to innovate during the next year, and to connect the jobs from the Catalogue with the coefficients according to which salaries in public services are currently disbursed. The Ministry of Finance is dedicated to developing a new information system which should provide planning, management and control of budget execution for labour costs of public sector employees, in order to be ready for the reform of public sector salary system in 2025. We have the IMF’s understanding in respect of the priorities we had in the previous year, as well as to remain committed to the fact that the reform of the salary system continues to be viewed as a strategic commitment of the Government,” Obradović has said.

The National Assembly commenced its session today in order to discuss, inter alia, draft laws on amendments to the Law on Salary System of Public Sector Employees, amendments to the Law on Salaries of Civil Servants and General Service Employees in Bodies of Autonomous Provinces and Local Self-Government Unit, amendments to the Law on Public Service Employees and amendments to the Law on Salaries of Employees of Public Agencies and Other Organizations Founded by the Republic of Serbia, Autonomous Province or Local Self-Government Unit.


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