GOVERNMENT, TRADE UNIONS SIGN AGREEMENT ON SALARIES

ZAGREB, 14 Nov (Hina) - Croatia's Vice Premier Borislav Skegro, the president of the Association of Independent Trade Unions of Croatia (SSSH), Davor Juric, and the president of the Croatian Association of Trade Unions (HUS), Niko Gunjina, on Thursday signed an agreement, according to which the untaxable part of salaries, which until now amounted to 700 kunas, would be increased as of 1 January 1997 and amount to 800 kunas. As of 1997, the lowest payroll tax rate would be decreased from 25 to 20%. The Government and trade unions are also expected to reach agreement on the amount of the lowest salary by the end of this year. Croatia's Premier Zlatko Matesa greeted the agreement, adding he was sure there would be more agreements of that kind. The president of the Association of Independent Trade Unions of Croatia, Davor Juric, said the agreement took into account the real situation of Croatia's economy. Niko Gunjina, president of the Croatian Association of Trade Unions, said the signing of the agreement had triggered off constructive talks between the Government and trade unions. Today's signing of the agreement marked the completion of talks the Government and trade unions started on 3 October. (hina) rm mm 141449 MET nov 96