Mrsic said the government was willing to withdraw its proposal to reduce the percentage added per year of service from 0.5 to 0.3 per cent and that economies would be made in other ways.
This means that per diems will be reduced from HRK 170 to 150, the Christmas bonus will not be paid this year and holiday cash grants in 2013, while next year's jubilee awards will be paid only to retiring employees or those with 40 or more years of service. The government also plans significant changes in the payment of transport benefits.
Mrsic said it was also agreed to immediately open negotiations on an annex to the agreement on the base pay in public services and to postpone a 2.3 per cent increase in salaries in the education sector until July 1, 2013.
All those steps would enable the government to cut costs for public sector employees by HRK 2 billion this year and next, the minister said, reiterating that the government must not exceed the HRK 21.6 billion earmarked in this year's budget for that purpose because that would bring the budget and Croatia's credit rating into question.
Unionists said they must inform their members of today's talks to see if agreement had been reached.
Vilim Ribic said the government did not endanger the price of labour in its offer, but that the money for the unpaid Christmas bonuses, holiday cash grants and other benefits must be paid once the crisis was over.
Mrsic said the government could not agree to commitments beyond its term in office.