The sector is to be split into two groups, allowing more autonomy in terms of salaries to institutions funded not only by the state but also by other sources. Unions believe this would lead to disintegration of the payment system.

Public Administration Minister Boštjan Koritnik told the press after meeting unionists on Monday that the first group of public sector organization, would include those solely dependent on the budget, including state administration, municipalities and social services, among others. These would be subjected to a binding set of rules of a centrally-led payment system.

The second group would include those also funded by other sources, such as organizations in health care and research. These would get more freedom in setting up their payment system. The government also wants to encourage a highe r share of performance-based pay, more flexibility in setting pay, less red tape and a simpler system.