Employment in public sector "banned until end of 2015"

The Serbian parliament passed a new Law on Reduction of Net Wages for Public Sector Employees and amendments to a total of ten laws.

Source: Tanjug

These include amendments to the Budget System Law, which provide for a two-year ban on employment of new workers in the public sector.

The ban on public sector employment will be in force until December 31, 2015.

The amendments to the Budget System Law were voted in with 128 votes in favor and 17 against.

Under the adopted law, the total number of part-time workers will be limited to 10 percent of the total number of employees in an agency or institution that is directly or indirectly financed from the budget, and new workers can be employed only with the consent of a Serbian government body, on the recommendation by a ministry or other competent body.

Since parliament adopted the amendment put forward by the Finance Committee, the ban on employment does not apply to employees in the institutions of the Serbian parliament, Protector of Citizens, Commissioner for Protection of Equality, State Audit Institution, Commissioner for Information of Public importance and Personal Data Protection, Anti-Corruption Agency, Republican Commission for the Protection of Rights in Public Procurement, Commission for Protection of Competition, Securities Commission, Fiscal Council, Republic Broadcasting Agency and Energy Agency.

The ban also does not apply to judges, public prosecutors and deputy public prosecutors, teachers in higher education institutions and scientists and researchers, staff in scientific research organizations accredited in compliance with the law, officials elected and appointed to positions in government bodies and bodies of units of territorial autonomy and local governments, and directors of public enterprises and agencies.

With the natural outflow of employees, the measures should bring about the savings of 0.15 percent of GDP, or about EUR 45 million, in 2014, and an additional 0.25 percent of GDP in 2015.

Finance Minister Lazar Krstić said during the debate that limiting employment was unavoidable as figures show that the public sector now has about 740,000 employees, which is about 20 percent more than estimated.

He added that the government will set up a body to consider possible exceptions to the ban, which will help oversee and control employment.

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