Unions of public sector and state administration employees on Monday signed an agreement with the government which will see their salaries rise by 6 percent in October and another 2 percent in April next year, state agency Hina said on Monday.

The salary raise will be applied to some 240,000 workers financed from the state budget. The 6-percent increase in October will cost 600 million kuna (€80 million), and the additional 2-percent raise in April another 500 million kuna (€66 million) per year, Hina said, citing government’s calculations.

The agreement also means an increased Christmas bonus, from 1,500 kuna to 1,750 kuna (€232), increased 2023 holiday allowance, from 1,500 kuna to 1,750 kuna (€232), and the so-called gift for children which all employees with children are entitled to, from 600 kuna to 754 kuna (€100).

The government also agreed to take part in new negotiations on further raises in September 2023 “at the latest.”

The agreement was signed by Labor Minister, Marin Piletic, and the leaders of nine out of 11 unions of public sector employees, as well as two unions of state administration employees whose members voted for accepting the government’s offer.

The government’s offer was rejected by the union of school employees and the independent union of science and higher education employees, which called the raise “insufficient, due to inflation.”

“Over the past six years my government has shown that it cares about the ongoing social dialogue, and seeking solutions together, in order to improve the position of public sector and state administration employees,” Prime Minister, Andrej Plenkovic, said.

Hina did not say what happened with the two unions which rejected the offer and whether their refusal of the agreement would lead to industrial action.