Increases in wages and pensions to cost government 89 million euros in 2010

TIRANA, Nov. 25 – The salary increases scheduled for public sector workers and increases in payments for retirement pensions will cost the state budge 12 billion leks, or about 89 million euros in total, according the data by the Finance Ministry.
The increases will take effect in July 2010. The wages and pensions will require about 6 billion leks each.
Salaries are expected to increase from 4 to 15 percent depending on their current level, where the lowest wages will be raised most.
Pension growth is projected to range from 7 to 10 percent; again, there will be higher increases for lower pensions. The pensions for retired people who worked in villages will grow by 15 percent.
These increases are higher than inflation rates in Albania which have been hovering around 3 percent so far this year, although currency rate fluctuations have a lot of effects on Albanian prices.
The government says the budget it has planed is solid.
“This budget reflects the target level executive for a small government with low taxes and great opportunities for economic development for EU membership,” said Finance Minister Ridvan Bode