Deputy Prime Minister Jadranka Kosor said after the signing she hoped three trade unions in the education sectors, which are currently on strike, would also sign the agreement.
The government went into negotiations with public service trade unions with a proposed basic wage growth of five per cent for 2007.
If any significant macroeconomic changes occur during the implementation of the agreement, e.g. if the inflation rate overshoots 4.5 per cent or the GDP growth rate exceeds six per cent, each party has the right to demand negotiations to amend the agreement.