LAWS TO WATCH: Moratorium on Tenure-Based Raise Payments Act

MarićLPJ Issue 166, 1 February 2016

A recently expired legislation denies state and public officials’ salary increases of 4, 8 and 10% on the basis of tenure until December 31, 2015.

The legislation adopted will renew the previous legislation, in order to further the fiscal sustainability of state and public services, and to establish the necessary savings, due to the current unfavourable economic environment.

Therefore, this legislation represents a structural measure which will have a planned impact of approximately €32.5 million in savings in 2016.

Proposed by: Ministry of Finance

Note: The legislation was adopted by the government cabinet and sent to the urgent Sabor procedure

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