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This policy analysis aims to discuss some of the potential implications of the increase in salary bill and private sector that result from the new Law on Salaries in Public Sector. First, the analysis provides an overview of the trends in public sector salary and it offers a comparative perspective between public and private sector. More precisely, it examines the effect that the new Law on Salaries may have on the budget, fiscal sustainability, private sector, and the potential socio-economic impact.
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