Government Collegium is the creator of the decision on the minimum wage of 1,000 BAM: Employers keep modern slaves, and workers have no satisfaction

(Patria) - Prime Minister of FBiH Nermin Nikšić and ministers of finance and development and crafts Toni Kraljević and Vojin Mijatović addressed the media today regarding the Decision on the minimum wage of 1,000 BAM.

Nikšić said that the Government can be proud of its financial situation and that after this decision, no one even mentions the story about debts.

Few decisions have provoked as many reactions as this one, and as he said, on one side we hear the loud part of employers and their experts who dispute this decision, while we have a part of employers who support this decision and a part who remain silent because the decision does not affect them since they do not have workers with salaries lower than 1,000 BAM.

"We have unions and workers who support the decisions, but we also have some workers who are coming forward who are under pressure from employers to organize protests," he said.

He said that loud employers are making blanket assessments about endangering 130,000 jobs and 860 million BAM that will flow into the FBiH budget.

"Based on data from the FBiH Tax Administration, based on contributions for PIO/MIO and health insurance, slightly less than 470 million BAM will be paid. 256 million will be paid to the PIO Fund, 183 million to the Health Insurance Fund. About 20 million is for the solidarity fund, and the rest is revenue for cantonal health insurance funds. 22 million BAM from unemployment insurance goes to the employment fund. Additional revenues for lower levels of government amount to 76 million BAM. The funds we are talking about will come into the Federation budget but cannot be used for anything other than pensions.

We are all witnesses of how we tried last year to ensure the possibility of support to help workers improve their living standards. A large number of employers did not use the opportunity to pay tax-free assistance to each of their workers," he said.

Nikšić said that in the last 6 months, out of 1.5 billion BAM that could have been paid as assistance, 144 million BAM was paid.

"The justification is ridiculous because the decree stipulated a ban on discrimination. With the Labor Law, which was passed according to the will of employers, workers have been turned into modern slaves, and I am sure there are no non-workers. All employers protected themselves from inflation by raising prices and made extra profit, and the only ones who did not get satisfaction are the workers," he said.

The Prime Minister said that they considered a variant of a decree on assistance, with the minimum wage being 700 BAM, variant B was 800 BAM, and that did not meet with understanding from employers.

"It was devastating for all of us when they proposed minimum income of 1,000 BAM, and a minimum wage of 650 BAM. We realized that we have employers who, through tax-free payments for hot meals, holiday pay, and transportation, are abusing their workers. There is a much larger number of those who are fair employers. These findings about the abuse of tax-free allowances motivated us the most to make a decision on the minimum wage and to create the preconditions for it to increase to 1,000 BAM until conditions are created for the adoption of a set of fiscal laws (income, taxes, minimum wage, fiscalization). The assessment of how this decision will endanger 100,000 workers is blanket and unfounded.

The Government will provide significant incentives for a significant number of craftsmen and employers due to the difference in contributions. But we will be very sensitive if layoffs occur. Through enhanced inspection supervision, we will be rigorous and prevent workers from being sent to the unemployment bureau and continuing to work illegally. I call on all workers who are exposed to this to contact us, and we guarantee them protection and anonymity. We must not allow any blackmail or calculations by anyone. Workers are already contacting us; there are all sorts of things happening, from double calculations to returning money in cash," said Nikšić.

He also presented indicators that 12,313 workers receive a minimum wage of 619 BAM or less. From 620 to 699 BAM, 93,999 workers receive. From 700 to 799 BAM, 35,000, from 800 to 999 BAM, 45,653 workers.

"It is a blatant untruth that the difference needs to be ensured as if everyone is on the minimum wage. The Government is aware that there are employers who will have problems complying with this. We have decided on measures – for micro and small enterprises, subsidies after the adoption of the budget, which should soon be sent into procedure, then a set of laws, the law on fiscalization is in public consultation and we will send it to parliamentary procedure. In the first quarter, we plan amendments to the laws on contributions, income, and minimum wage. One of the measures is also inspection supervision to prevent illegal work, tax evasion, and other abuses. The Government is ready to consider the issue of adopting a decree for employers who prove they have increased wages and exempt them from paying contributions," said Nikšić.

Nikšić said that there will be an increase in child allowance and caregiver benefits.

Nikšić said that criticism from some employers was expected, but fears of bankruptcy are unfounded.

"We will not withdraw the decision. We will not be hostages, especially to those who do not want better for workers. Our mission includes reducing burdens and attracting investments, but also greater workers' rights," he said.

Nikšić said that the creator of the decision is the Collegium of the Government of FBiH.

"Ministers were informed when it was discussed in the government. Our desire is to keep it within the circle until it comes to the government, but there are people who like to get themselves into the media. But they like to get the scoop and have it appear in the media before it reaches the Government. No one had any objection that they would do it differently," said Nikšić.