The decree of the Government of the Federation of Bosnia and Herzegovina (FBiH), which recommended the payment of tax-free assistance to workers in the amount of 1.080 BAM, is considered by the employers of the Central Bosnia Canton (CBC) to be exclusively pre-election marketing. Salaries, especially for those employed in the private sector, are more like social benefits, so most of them will find a way to pay a certain amount. However, at a time when the consumer’s basket has almost reached 3.000 BAM, it is only extinguishing the fire. They see a long-term solution in reducing taxes and contributions.
Almedin Hasicic, employed in a Travnik company, together with about 50.000 workers in the CBC, believes that his employer will pay a certain amount of aid by the end of the year. At a time of drastic price increases, any help is welcome, but it’s just a drop in the ocean, he says.
Employers in the private sector know best how much financial aid would mean to workers in this canton, which for years has ranked last in the FBiH in terms of average salary. Despite the extremely difficult economic situation they are facing, they emphasize that they will try to comply with the recommendation.
”Regardless of what the salary is, it is miserable in BiH compared to the cost of living, especially in the private sector. Any stimulation in this sense is good for workers, everyone will try if they can, and even take on debt,” says Saban Rizvic, member of the Board of Directors of the CBC Employers’ Association.
Instead of pre-election marketing, businessmen expected long-term solutions from the FBiH Government, namely the reduction of taxes and contributions and parafiscal levies, which was promised at the beginning of the mandate eight years ago. Savings on this basis could increase wages. Such a situation, in which people who work need to be paid aid in order to survive, is considered tragic.
”This has not been done. Perhaps some of these consequences, that people are leaving us, are mostly due to insecurity and low incomes. It is certain that with smaller contributions we would have higher salaries, and people would be more satisfied,” Rizvic adds.
Salem Ekmescic, a member of the Assembly of the FBiH Employers’ Association, believes that it is extremely difficult to live with these wages at these price increases: “We are ready to immediately give everything to increase the personal income of employees.”
As they find ways to provide funds to help their employees, employers in the private sector argue that it is high time to change the relationship of the executive branch, otherwise we will be out of people.
”I think that the Government has a unique opportunity to reduce contributions on the basis of salary increases for workers. Demographic conditions are quite bad, we are seeing more and more young and able-bodied people leaving – I think we are going to fall into a pretty big crisis,” warns Snjezana Kopruner, director of GS – Machine factory Travnik.
Instead of the consequences, the causes should be solved – the employers claim, so that the workers could truly live on their earned wages, and in their own country.
