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Reading: The Worker must earn one Salary for himself, one for the State
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Sarajevo Times > Blog > BUSINESS > The Worker must earn one Salary for himself, one for the State
BUSINESS

The Worker must earn one Salary for himself, one for the State

Published: May 20, 2024
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Representatives of the Association of Employers in the Federation of Bosnia and Herzegovina (FBiH) organized a meeting with the employers of the City of Mostar, where they discussed problems and obstacles for better business in local communities and the activities that need to be undertaken with the aim of improving the business environment.

Director of the Association of Employers in the FBiH, Mario Nenadic, emphasized that the key problems in the FBiH are still related to fiscal and parafiscal levies, burdens faced by businessmen in their business, and the labor force, i.e. the need to liberalize the labor market.

”We have a large trend of workers leaving BiH, and on the other hand, as a response to this shortcoming and this lack in the system, we do not have an appropriate state measure to liberalize the import of labor, which is a trend everywhere in the world, especially in the surrounding countries,” Nenadicemphasized.

Speaking about the burden on the salary, he said that the current situation is such that the worker has to earn one salary for himself and one for the state.

”The burden of labor costs is truly unbearable. Over 72-73 percent are burdens on the net salary of workers to the state only when it comes to taxes and contributions, and when you add some other burdens to the public sector, today you have a situation that is very close to the situation of salary to the worker, salary to the state. It is not only important that the employer has to pay that salary, it is much more important that the worker has to earn one salary for himself and one for the state. And that’s where all the problems we hear about every day arise – illegal work, undeclared work, out-of-pocket payments,and so on,” Nenadic pointed out.

As he said, all this leads to greater chaos, an even greater problem, and an unsettled state. He also noted that positions are being reviewed at the level of the representative Association of Employers.

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