Did the PES cut wages when others in the public sector?



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electronic distribution of eps building02 photo RAS Serbia V. Lalic

Photo: V.Lalic / ASR Serbia

Whether the data relating to the increase in average net earnings in EPS for 2015 and next year are correct – asked the Tax Council following the last publication published on the occasion the refusal of EPS at the request of the Tax Council that this public company did not reduce the salary mentioned year, when all the public sector should do it.

The whole story between the EPS and the Tax Council began a few days before the budget debate for 2019, when Finance Minister Siniša Mali announced that salaries of public sector employees would increase by 5% in 2019 by 2020. for even more. This mainly provoked the reactions of the President of the Budget Council, Pavle Petrovic. At a press conference at the National Bank of Serbia, which was held yesterday, he commented on the situation of the EPS and explained why she does not consider it a good thing for the economic growth of Serbia.

Pavle Petrovic
Photo: G. Srdanov / ASR Serbia
Pavle Petrovic

Petrović said that it was justified to abolish half of temporary wage cuts of 5% in public assumptions, but not in Elektroprivreda Srbije (EPS) because, as claimed by the state-owned company, it did not even reduce the net benefits of employees at the end of 2014, but continued to decline. will increase in the coming years.

– At the same time, with the increase in wages, BPA has reduced investments and they are lower than the depreciation – said Petrović, adding that the poor performance of the BPA in 2017 had reduced the rate of growth of the product gross domestic product (GDP).

He said that it was not justified to increase the average salary in this company to nearly 90,000 dinars next year and to around 94,000 in 2020, and that these funds should be invested.

Following this statement, EPS responded by denying the statement of Pavle Petrovic.

– The state-owned company "Elektroprivreda Srbije" denied the statement of Pavle Petrovic, chairman of the tax council, that EPS would have reduced the salaries of employees at the end of 2014 and stressed that he had respected all measures of the Serbian government and reduced those of its employees by 10% in 2015. Otherwise, EPS would not be able to pay wages because of the monthly control of the Ministry of Finance – it is indicated in the denial of EPS, which adds that the Tax Council has now, as before, carried out flat-rate valuations of PSE benefits, as it does not have precise information and EPS systematically applies the reform measures and the fiscal consolidation program in line with the Serbian government and the international financial institutions, as confirmed by the excellent results of the operations.

Director of EPS, Milorad Grcic
Photo: EPS / Promo
Director of EPS, Milorad Grcic

Earnings per share also indicated that the revenues of Elektroprivreda Srbije are paid up to the funds provided for in the annual program of operations, approved by the Government of the Republic of Serbia. The amount of funds earmarked for salaries is provided in accordance with the Law on the Budget System and with the directives of the Ministry of the Economy concerning the preparation of annual management programs.

– In addition, the Law on Public Enterprises and Regulation on the Mode and Control of Wages in Public Enterprises, Ministries of Economy, Finance and Labor, Employment, Alumni Fighters and Social Issues as well as payroll monitoring each month – is concluded in denial.

However, as this debate has not ended, the Budget Council today issued a press release which ends with the question of EPS.

In a press release to the media, the Council stated that it was using the official data from the annual reports on EPS operations.

– EPS therefore did not reduce net wages in 2015, contrary to what the law has imposed and to other public enterprises and to the State in general (health, education, administration, etc.) and the following years, he continued to increase them further advice.

"EPS claims that the company's 2015 net profits were 10% lower than in 2014. EPS does not deny the Tax Council, but its official reports are available to the public on the Business Registers Agency's website."

According to the announcement, by abolishing this law in 2019, the average net earnings in EPS should return to its pre-reduction level, ie. about 80,000 dinars ".

However, according to the Board, since the 2015 business has not reduced net wages, the abolition of the law will serve to further increase the average net salary in EPS, to about 90,000 dinars in 2019 and around 94,000 dinars in 2020.

– This means that the average net salary in EPS will be nearly 15,000 RSD higher than in 2014, which is not the case in other listed companies, which the Tax Council considers unjustified – said in a communicated.

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