After the Parliament of the Federation of Bosnia and Herzegovina again did not consider the changes to the law proposed by the Association of Employers, which, as they claim, would allow workers’ wages to increase by up to 400 marks, economists explain that this is also proof that there is no economic policy in Bosnia and Herzegovina. The question is whether there is optimism, since the Government of the Federation announces systemic solutions.
Faced with a labor shortage, employers in the Federation of Bosnia and Herzegovina propose changes to the Law on Contributions and the Law on Income Tax. This would imply a tax reduction from 41.5 to 11 percent for the increased amount of salary, which would be higher and up to 400 marks. Prolonging does not encourage them.
“We remain with those fears and announcements that an even darker scenario is being prepared and that fewer and fewer workers in Bosnia and Herzegovina will seek their destiny, seek final solutions,” says Mario Nenadic from the Association of Employers FBiH.
“Employers are aware that they will not keep workers without a significant increase. I fear that this is taking too long and that the increase will be really miserable,” according to Mersiha Besirovic from the Trade and Service Workers’ Union.
And while, according to the proponents, an increase in wages in the real sector would enable money to be returned to the budget, the Government announces the preparation of a set of financial and fiscal consolidation laws that will be referred to the parliamentary procedure as soon as possible. They say that relieving the burden on the economy aims to protect both workers and employers.
“I understand that every government sweetens their budget and they are afraid of emptying the budget. However, this is in favor and is useful for the workers. This was a symptomatic situation, where the government and the unions and employers agreed on of these changes,” says Dennis Gratz, representative in FBiH Parliament.
“Here now the only question is how much funding will be lacking, especially outside of the budget funds, this is not free. This is a very serious reform intervention that requires a serious analysis, simulation and then to know how much it will actually cost us, the Federation budget, changes and supplementing these laws,” according to Vojin Mijatovic, Deputy Prime Minister of the Federation of Bosnia and Herzegovina.
The average paid net salary in the Federation of Bosnia and Herzegovina amounts to about 1,200 convertible marks. The fact is that employers cry out for new workforce every day, and economists point out that we are constantly going around in circles, without a systemic solution. The proposer of the law, Admir Čavalić, also agrees with this.
“The fact that it is proposed by the employers, and that the Government has been postponing for so long, both the current one and especially the previous one, simply says that we do not understand or do not want to understand this vital issue for the survival of the economy in Bosnia and Herzegovina,” says Zeljko Sain, professor at the economy university in Sarajevo.
This is supported by the fact that our country is faced with an outflow of labor every day, and employers are often forced to import labor from other countries. Unfortunately, the data show that some of those who are at the employment offices are not looking for work, and some of them work “on the black” or are employed in some of the countries abroad, where they are paid significantly more for the same work.
