Development of Personal Allowances and Real Incomes in the Budgetary Chapter XIII. (Ministry of Defence) between 2005 and 2017

Abstract

Over the past few years, regarding budgetary Chapter XIII. (Ministry of Defence) the personal allowances of the personnel increased greatly. This is due to the goverments decision, as part of the introduction of the new military carrer model, as of July 1, 2015 an average salary increase of 30 % was implementedfor the soldiers, later on until January 1, 2019 there was an average of 5% increase every year. For the civil servants, the defence sector supplement was introduced. These were necessary because, on one hand, the last significant wage development occurred in 2005-2006, and on the other hand, the minimum wage and guaranteed minimum wage were constantly increased in the national economy, as a result of which the wage increase of the employees of the Chapter was much lower than that of professionals with similar qualifications in the civil labor market. In our article, we will look at how personal allowances and avrage earning developed from 2005 until 2017 in nominal and real value, using 2005 as base value.