CCI reveals: Every fourth employee in BiH works in administration, salaries twice as high as in the economy

Salaries for administrative workers in Bosnia and Herzegovina are twice as high as those in the economy. The difference in average salary between public administration and the real sector is worryingly high in favor of public administration (58 percent in FBiH and 45 percent in RS) and is the highest in Europe. This is stated in the report 'State of the Nation 4', recently presented in Sarajevo by the Centers for Civil Initiatives (CCI), writes Patria.

The CCI report also states that more than a quarter of employees in BiH are on the budget, with no significant changes in the last two years.

- The percentage of employees in public administration/public services is far above the EU and OECD average, with this share being 26.26 percent in FBiH and 23.92 percent in RS. Since the adoption of the Agenda, the percentage of employees in public administration in FBiH has decreased by 0.25 percent, and in RS by 1.62 percent, which in both cases is positive but not of great significance, as it does not indicate the success of government measures such as the moratorium on new employment in the civil service – it is stated in the report 'State of the Nation 4'.

- More than a quarter of the budget is spent on salaries. The share of salaries in the budgets is significantly high, cumulatively amounting to about 25 percent, with no significant changes in the last two years – the Report further states.

Sarajevo economics professor Mirko Puljić tells Patria that the situation in BiH is not encouraging. When asked by journalists whether it is more likely that governments in BiH will lay off workers from the bloated administration, or try to use that administration in a way that creates better conditions for economic development, Professor Puljić says that neither will happen.

- The administration is not only too large, too bloated, it is also inefficient – Puljić tells Patria.

- And, with all that, you have the trade union as a limiting factor for some rationalization of the administration; they do not allow the number of jobs to be reduced, they do not allow salaries to be reduced, they sue the levels of government, and so on – adds Puljić. He believes that the people currently managing the most important institutions in the country cannot ensure any progress for the citizens.