GSV:LOWEST WAGE TO BE 1,700 KUNA AS OF APRIL 1

ZAGREB, March 21 (Hina) - As of April 1, the lowest salary and the base from which contributions for pension insurance can be paid, will amount to 1,700 kuna ($212.5). The lowest Croatian salary will thus rise by 200 kuna from 1500 kuna, in line with an agreement between government officials, unionists and employers who held a session on Tuesday within the Economic and Social Council (GSV). A decision on an increase in contributions to the pension insurance will be adopted at the next session of the Pension Insurance Fund, the GSV concluded on Tuesday. "Social partners are opposed to any rise in the level of the state expenditure, which is already very high, but inevitable owing to the inherited problems," said Vitomir Begovic, the acting head of the GSV. It is necessary in the first half of this year to complete a tax reform which the Croatian Government could not harmonise with social partners due to a lack of time. What was agreed upon was to raise the non-taxable part of income from 1,000 kuna ($125) to 1,250 ($156.25). The Government, unions and employers concluded that by September they should carry out thorough preparations for drafting a good and development-minded budget for 2001. It is necessary to reform pension and public health systems as part of these efforts, Begovic added. Unions launched an initiative on non-taxable 12 kuna (1.5 dollars) per working day for lunch of workers, what was rescinded by the government led by a former Premier, Nikica Valentic. (hina) ms