Ten ministers of the FBiH Government made a decision on a minimum wage of 1,000 KM, only learning about Mijatović's proposal at the session

Written by: Amra Vrabac

A picture is worth a thousand words. That's how the last session of the Government of the Federation of BiH, held on December 30, 2024, and at which the decision on a minimum wage of 1,000 KM was made "through the eye of a needle" could be briefly described. It was a sudden decision by the Government of the FBiH, namely Vojin Mijatović with the support of Nermin Nikšić.

Before the Government session, a session of the Economic and Social Council was held. After the employers' proposal that the total earnings of workers in 2025 cannot be less than 1,200 KM, and that the non-taxable part be paid as an incentive for employers to increase employee wages until fiscal reform is completed, was not accepted, Vojin Mijatović came to the session with a new proposal.

One of the union representatives in the ESC claims that everything happened in a few minutes. However, Mijatović's proposal was not voted on. The minutes of the session will confirm this, so it is unclear why it is stated in the public space that there was a vote. The decision on the minimum wage itself states that it was made in consultation with the ESC.

According to the statements of the meeting participants, Mijatović entered the session and said: "This is our proposal for a minimum wage of 1,000 KM, does anyone have anything to say?"

And while the other participants were looking at each other, Mijatović left the ESC and put the proposal on the Government's agenda.

The fact that other members of the Government did not know what awaited them at the session is confirmed by the correspondence of one ESC member with a minister from NIP in the Government who, at that moment, just before the FBiH Government session, did not even know about the proposal that Mijatović had put to a vote.

Only ten ministers out of 17 members of the FBiH Government attended the session. These were Vojin Mijatović, who was replacing Prime Minister Nermin Nikšić, Toni Kraljević (HDZ), Vedran Škobić (HDZ BiH), Sanja Vlaisavljević (HDZ BiH), Adnan Delić (NIP), Kemal Hrnjić (NIP), Ramo Isak, Vedran Lakić (SDP), Nedžad Lokmić (SDP), Željko Nedić (HDZ BiH).

Ministers from Naša stranka Amir Hasičević and Nasiha Pozder were not present at the session, nor was the Minister of Health Nediljko Rimac, who has been on sick leave for a longer period. Several other ministers from HDZ and SDP were also absent.

The decision on the minimum wage was published as early as December 31 in the Official Gazette of FBiH and its application has begun.

Only later did Nikšić and Mijatović begin with explanations and promises of subsidies for crafts, small and medium-sized enterprises. However, neither the FBiH budget has been adopted nor has the system for awarding subsidies been specified, and the decision on the minimum wage is already in effect. Reductions in contributions and other levies on wages borne by employers are being discussed for the future.

The business community is also confused, and the Council of Foreign Investors has commented after the Government's sudden decision. It is interesting that the FBiH Government has suddenly fallen silent about the adopted Decree on the payment of aid due to increased living costs, which it declared confidential, and which stipulated that workers' earnings should not be below 1,200 KM, as proposed by employers. However, the employers' proposal did not pass, and the Decree was replaced by a decision on the minimum wage without any market analysis or projections on the overall economy and workers.

However, the Government, with a narrow quorum, voted on a decision whose consequences we will only see. It is difficult to talk about benefits for workers. Prices are constantly rising, and new price increases are announced precisely because of the minimum wage increase. So, workers' happiness due to the wage increase will disappear with their first purchase in January.

Layoffs, an increase in the grey economy, reduction of operations, and the relocation of companies to the RS entity due to lower wage burdens are in the pipeline. We will see the first effects as early as the beginning of February, and then we will know who was right, the Government or the employers.