Croatia - Salary increase negotiated in public sector - March 31, 2016

The government and public sector trade unions started negotiations on a collective agreement. Negotiating committees of the government and unions will negotiate about increasing the base salary by 6%, following GDP growth in two consecutive quarters by two or more percent, according to an agreement signed in 2009. The government does not deny that the employees are entitled to the raise, but for the fulfilment of the obligation it would have to find around 1.8 billion Croatian Kuna (240 million euro) a year. These funds are not included in the 2016 budget which is expected to be adopted soon, and have not been included in the budget projections for 2017 and 2018. The trade unions announced that they will not give up on the increase.

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