“With the IMF in October on refining the Swiss pension growth model”

Belgrade – Finance Minister Sinisa Mali said that one of the topics of the meeting with IMF representatives in October will be the refinement of the Swiss pension growth model.

Source: Tanjug Saturday, August 29, 2020 | 09:27

Photo: Tanjug / Zoran Zestic

That model implies that pension growth is in line with wage growth and inflation, and Mali says the Swiss model of pension growth is the best possible model that protects the interests of pensioners.

“We will have information in the coming days on the expected increase in pensions for next year, considering that we are just finishing the analysis of wage growth and inflation for September,” Mali said.

He announces that these data will be made public and that at the end of next week the Serbian Government will present a proposal to increase the minimum wage by 2021.

“Regardless of the big problems that exist in the functioning of the global economy, things are going more or less normally in Serbia. So, we are going with an increase and we will certainly go with an increase in the minimum wage and an increase in pensions by 2021.” Mali emphasized.

When asked if there will be wage increases in the public sector by the end of the year, Mali said it is too early to talk about it until data on the entry of VAT into the budget comes in in October.

“Our inputs to the budget in June and July are better than we expected, and the same is true for the first half of August,” Mali said, adding that the Budget Proposal for 2021 will be ready in October and will be known then. how much will be the salary increase.

It emphasizes that the state’s priority is to maintain and raise the standard of living of Serbian citizens, which is proof of strong measures to support the economy during the crisis, but emphasizes that it must be responsible and not allow the budgetary balance to be upset and macroeconomic.

The Swiss formula for pension growth means that for 1.7 million pensioners in Serbia, pensions are increased according to the model that implies an adjustment with 50 percent inflation and 50 percent growth of the median salary.