Under the government's proposal, MPs can retire with a full pension with 25 years of service instead of 20 years, and they have to be MPs throughout the entire four-year term.
Male MPs can retire at the age of 60, and the retirement age for female MPs will be 55.
The Ivo Sanader cabinet also proposed changes to the law regulating salaries of judges and other judiciary officials. The changes envisage a possibility for the government to cut salaries of state officials and judges.
Deputy Prime Minister Jadranka Kosor said that in times of crisis state officials should express solidarity with general population.