Deputy Prime Minister and Minister and Economy Minister Mladjan Dinkic on Tuesday stated that the number of employees in the state administration will be reduced by about 8,000, i.e. by about 10 percent over the next nine months, and that a lex specialis, a law on temporary reduction of wages in the state administration will also be adopted.

Dinkic told a news conference that those people will receive severance payments in keeping with the Labor Law, and that there will not be stimulation severance payments for leaving the state administration.

He also said that he still believes that this is not enough, because the state administration has about 80,000 employees. He underscored that the number of regulatory bodies, some one hundred of them, will be reduced aiming at cost reduction. Under the plan, top wages in public administration will not exceed an amount equal to six average salaries in Serbia.

According to Dinkic, the temporary reduction of wages will apply to the government, local and province administration, the Serbian parliament, National Bank of Serbia, Chamber of Commerce of Serbia, regional chambers of commerce, as well as public companies and agencies.

Dinkic underscored that the measures refer also to public companies, public agencies and other organizations fully owned by Serbia, but will not apply to the wages of those employed in education, health, culture, social welfare institutions, army, police and justice.

Minister Dinkic recalled that freezing of wages will save up to RSD 13 billion, while additional taxation in state administration will save about RSD 2 billion.