News in English     | 23.06.2021. 17:19 |

Hurtić: FBiH PM supports minimum wage increase agreed with unions and employers

FENA

SARAJEVO, June 23 (FENA) - Advisor to the Prime Minister of the Federation of Bosnia and Herzegovina Zlatko Hurtić told FENA that the FBiH Government, together with employers and unions, is holding consultations through the Economic and Social Council on increasing the minimum wage.

Hurtić reminds that yesterday the Association of Employers and 18 trade unions issued a statement stating that they are working intensively with representatives of the FBiH Government to reach an agreement on the minimum wage through dialogue and cooperation.

The Association of Employers of FBiH and "representatives of legitimate, branch unions", as stated in the statement, recently signed the Joint Platform for Social Dialogue, and all agree that the announcement of Selvedin Šatorović (an illegitimate president of the Federation of Independent Trade Unions of BiH) on holding a protest with a request to increase the minimum wage to 1,000 KM, is a belated and populist move".

Pointing to numerous doubts that have caused numerous, contradictory information in the public regarding the minimum wage and its increase, Hurtić explains that the Labor Law envisages determining the minimum wage through a Decree adopted by the FBiH Government, at the proposal of the Ministry of Finance. Economic and Social Council for the territory of FBiH.

Hurtić considers the demands of individuals to increase the minimum wage to 1,000 KM unrealistic, and completely rejects the accusations that the Prime Minister wants to block the announced protests, reminding that the Prime Minister accepted the request of the trade unions, which operate within the Economic and Social Council, to increase the minimum wage.

“The FBiH Government believes that the minimum wage should be determined together with the adoption of the law on contributions and income tax, which have been in the parliamentary procedure for years, because this would ensure that the growth of the minimum wage also means growth of workers' incomes, and avoid the present practice, which is enabled by the current regulations that the growth of the minimum wage is not accompanied by the growth of workers' incomes due to manipulations around the amount of meal allowance,” says Hurtić.

Data from the FBiH Tax Administration show that a large number of workers does not receive the so-called minimum wages since 2014, when 110,064 people received a net salary of up to 420 KM, and that number decreased to 23,732 in 2020.

On the other hand, there is a real danger that a large number of workers would lose their jobs or be forced to work in the gray economy due to the inability of employers to pay a minimum wage that would be higher than the average wage, which is not recorded anywhere in the world.

That is why the Government, through the two mentioned laws, proposed a reduction of taxes and contributions, which would create preconditions for an increase in salaries and protect jobs.

(FENA) A. B.

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