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Serbia can increase pensions by up to 5% in 2018 - Fiscal Council

Serbia can increase pensions by up to 5% in 2018 - Fiscal Council Hirurg/Shutterstock.com

BELGRADE (Serbia), October 2 (SeeNews) - The head of Serbia's Fiscal Council, Pavle Petrovic, has said wages in the public sector and pensions can be increased by up to 5% in 2018 as the gross domestic product (GDP) is expected to grow at the same rate next year.

The rise in pensions and minimum wages in the public sector should not outpace the GDP growth rate, or otherwise budget deficit and inflation will increase, Petrovic said in a video file posted on the website of Serbian news agency Tanjug on Friday. 

The space for the increase of pensions and wages in the public sector was opened as a result of the successful fiscal consolidation in the last three years, Petrovic said.

The wages in the private sector are forecast to rise by between 4.5% and 5% this year, he noted.

Last month, Serbia's Social and Economic Council decided to increase the minimum wage in the country to 143 dinars ($1.4/1.2 euro) per hour from 130 dinars as of 2018.

Serbia's Fiscal Council was established in 2011 to assess the compliance of the fiscal policy of the government with the fiscal rules.

The Social and Economic Council, established in 2001, brings together representatives of the government, employers and trade unions.

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