Negotiators arrived at a point which signals a "serious convergence", but the conditions to close the deal have not been met, said Branimir Štrukelj, the head of the Confederation of Public Sector Trade Unions.

He said a deal on Monday was a possibility, though that is by no means a given.

Interior and Public Administration Minister Gregor Virant, however, said the deal would be sealed on Monday and examined by the government on Thursday.

"We're just inches away, I see no particular reason why we should not reach a deal on Monday," he said.

The government went into the talks seeking EUR 158m in savings this year, a figure that is also mentioned in the Stability Programme that it sent to the European Commission today.

It is unclear whether the actual size of the cut or ways of achieving it are on the table, as both sides refrained from discussing the specifics of the talks.

The government put additional pressure on the unions by announcing yesterday that a special temporary payroll tax would take effect next year if no deal on wage cuts is reached.

Since the tax would hit all employees alike, the government would have an ally in forcing the public sector workers to accept cuts.