GOVERNMENT ESTABLISHES SALARY BASIS

ZAGREB, June 7 (Hina) - The basic wage in state administration and public services is 4,232.43 kuna gross, the Croatian government established at today's session. The basis is by seven percent less than the former one of 4,551 kuna. The government also suggested a decrease in basic salaries for state and justice officials by the same percentage. The decision on the new basic salary is to be applied as of May 1, meaning salaries will be paid in June for May. The decrease is an unpopular decision and it affects 220,000 people and salary is one of the most important issue for every employee, Vice-Premier Goran Granic, who acted as the government's chief negotiator with unions. Government members have said repeatedly that a seven percent decrease was to be applied for the salary basis, not the actual salaries. At many offices the new basis will result in a greater fall of salaries, especially where they were inappropriately high and where there was insufficient professional education. The new system will, however, bring along an increase in many salaries, especially in the education system and science, Granic stressed. The government has left itself a possibility of making the salary basis increase by the end of the year, depending on the economic successes and economising. We hope economic development will enable an increase in the basis, Prime Minister Ivica Racan said. (hina) lml sb