ZAGREB, Jan 2 (Hina) - "The new taxation policy, which is the result of an agreement between the government and unions signed in December 1896, envisages that salaries be increased between 5 and 9 percent in the net part of the
salary, while pensions will be increased by 10 percent and would thus begin to catch up with salaries," Croatian Labour and Social Welfare Minister Joso Skara told the Croatian television on Thursday.
ZAGREB, Jan 2 (Hina) - "The new taxation policy, which is the
result of an agreement between the government and unions signed in
December 1896, envisages that salaries be increased between 5 and 9
percent in the net part of the salary, while pensions will be
increased by 10 percent and would thus begin to catch up with
salaries," Croatian Labour and Social Welfare Minister Joso Skara
told the Croatian television on Thursday. #L#
Under the agreement, the untaxable part of salaries would
increase from 700 to 800 kuna and the tax rate in the Law on Labour
would be decreased from 25 to 20 percent, which increased salaries,
Skara said.
The agreement also envisaged that the part of dismissal wages
which is paid under the Law on Labour would not include taxes or
municipal taxes, which would result in a realistic raise in
salaries and the part of child's allowance which had its course
through various banks or accounts would be directly paid to users.
Skara said.
The decisions on these important issues would be reached by
agreements and consensus between unions and the government, Skara
said, adding that the most important parts of the agreement were
that "in 1997, the government will not regulate salaries but will
leave that up to collective agreements, that is, to the autonomy of
the will of employees and employers".
As regards unions who are on the state budget, the union of
government employees, culture union and flight control union, the
basic salary rate would be increased by 5 percent from January 1,
it would further be increased by 10 percent from 1 July to 30
September and 3 percent further by the end of the year, Skara said.
Speaking of pensions, Skara described the 10 percent of
increase in pensions as "great progress and a realistic possibility
of Croatia and the Croatian state".
The new bill on pension welfare would ensure that pensions
keep up with salaries.
The increase in pensions would depend of the increase of the
cost of living, which was still an open question which is to be
discussed by the Croatian Parliament, Skara said, stressing that
"the addition of 100 kuna is also included into the basic pension
rate and will be increased by 10 percent".
(hina) lm
022322 MET jan 97