Parliament to Debate Public Sector Pay Deal, VAT Increase

The deal reached between the government and public sector trade unions, which envisages around EUR 208m in annual savings for 2013 and 2014 when combined with agreed savings in material costs, has been put forward by the government in changes to the public sector pay act.

If the bill is endorsed in emergency procedure on Tuesday, the cuts – a mixture of progressive cuts in base pay and cuts in bonuses and top-up pension insurance – would take effect in June.

Also on the agenda of the National Assembly on Tuesday will be the government's proposal to amend the 2013 and 2014 budget implementation bill which envisages an increase in VAT and the public broadcaster license fee.

In line with the proposal, the standard VAT rate would be raised from 20% to 22% and the reduced rate from 8.5% to 9.5% on 1 July.

Moreover, the government has also proposed that the RTV Slovenija license fee be raised from EUR 12.11 to EUR 12.75 per month, thus erasing the 5% cut implemented by the previous government at the start of the year.