Thanks to good fiscal results, salaries and pensions will be increased by the end of the year.

The minimum labor cost to be raised as well, Labor Minister Aleksandar Vulin told RTS on Tuesday.

“When the PM says there will be a salary and pension increase, that is how it will be. In this budget, we have now made it possible to secure the funds required for this to happen by the end of the year. Very soon, the amount of the increase will be known,” Vulin said, according to Tanjug.

The minister also announced discussions with trade unions and employers about increasing the minimum labor cost, that will become effective on January 1 – while the decision must be made by September 15.

Serbia’s “increasingly health economy” will allow those who contributed to it the most – pensioners and the poorest citizens – to feel the benefits first, according to Vulin.

He also revealed that some 350,000 people in Serbia earn minimal wage.

Vulin announced that penalties for early retirement would be abolished – “the state now has the money and wants to repay pensioners in this way.”

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