A draft law has been proposed that would limit the maximum salaries for all those receiving funds from the state budget. The savings are to be used to increase pensions. Bonuses for managers of loss-making state-owned enterprises and payments to supervisory boards may also be reduced.
Limiting salaries for civil servants
The draft law presented today proposes to set limits on maximum salaries for all employees financed from the state budget. This includes civil servants, heads of state-owned enterprises and members of supervisory boards.
The aim of the initiative is to reduce government spending on public officials' salaries in times of financial instability. The draft law also provides for the cancellation of bonuses for managers of unprofitable state-owned enterprises.
Reduced remuneration to supervisory boards
The document also states that payments to members of supervisory boards of state-owned enterprises will be reduced. This should help reduce the burden on the budget.
Payments to supervisory boards have often been criticised for their lack of transparency and high amounts, especially in the context of public funds shortages.
Increasing pensions through savings
The savings, according to the draft law, are to be used for increase in pensions. This should improve the social protection of pensioners who are most affected by economic difficulties.
The drafters of the bill emphasise that pension increases will only be possible if the proposed changes are effectively implemented.
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