Nikšić's New Year's message to foreign investors: Go to 'banana' states if a salary of 1,000 KM is too much

(Patria) - The decision of the Government of the Federation of BiH on a minimum wage of 1,000 KM for 2025 has caused strong reactions. While workers and trade unions supported this decision, employers, both domestic and foreign, expressed concern given that the Government made such a decision two days before its application, which will significantly affect employers' budgets, who, in addition to the 381 KM increase in the minimum wage, will also be burdened with an additional amount of contributions on that increased amount. However, for the federal Prime Minister Nermin Nikšić, who was not even at the Government session, such reactions are a result of misinformation or interest groups and malice.

"I am pleased that workers and labor organizations recognize the importance of the adopted decree for workers, but also for the economy as a whole. Some negative reactions can be attributed to misinformation, some are the view of interest groups who do not want to see a strong working and middle class, and some is simply pure malice and jealousy of those who did nothing for the workers when they had the opportunity.

Of course, some should not even be addressed because their populist reactions are easily read and seen through the prism of neglect and idleness when they were in power and today's unfounded criticism as the opposition. Others deserve a comment simply to check if they are just uninformed or biased.

For the Foreign Investors Council, which I greatly respect, I have a very short and clear message:
Those investors for whom a salary of 1,000 KM is an obstacle to investing should freely seek some 'banana' states and pay workers a few hundred euros there. We are a country aspiring to EU membership, and every step we take will reflect that ambition. I will never agree to fulfill obligations for EU membership, no matter how slow it may be, while workers' salaries are the last condition on that path.

At the beginning of our mandate, we said that all investors who come to Bosnia and Herzegovina because of the meager cost of labor should not come. Our profit tax rates are among the lowest in Europe. Unfortunately, workers have hardly felt the recorded over 5 billion KM in company profits in their income, even when we allowed employers to pay tax-free bonuses to workers.

I emphasize again that the minimum wage in the Federation from January is 1,000 KM, which has nothing to do with the total income of workers, because, in accordance with the law, there are still tax-free allowances on the minimum wage.

To those who 'fear' that higher wages will endanger the economy, I point out that all relevant research shows that the key to strengthening the market economy and national economies is the growth of minimum and average wages.

Giving to the rich to become richer has never been shown to be a measure that results in a fairer society for all. The rich have the right to their wealth, but all citizens, especially workers, have the right to dignity. By increasing income, citizens' purchasing power increases, and they spend that money on employers' goods and services. Public revenues enable interventions and support for those affected, which the Government of the Federation will also do.

After all, numerous entrepreneurs are the largest beneficiaries of subsidies, public infrastructure, capital, and other jobs they perform for the state and services they provide to public, national institutions, which are financed from the budget, and a series of other measures they use.

I especially tell small entrepreneurs, craftsmen, farmers, employers in the textile, leather, and footwear industries not to worry. The Government will provide them with support so that their businesses are not endangered in any way. We will discuss the details soon.

I will never lump everyone and everything together, including employers. I am always ready to confront arguments with those who have proven to be fair employers towards their workers. Of course, even more so with those, hopefully fewer, employers who abuse every right the state gives them in relation to workers. They pay one-time assistance, vacation pay, meal allowance, and then their workers have to return the cash. These are certainly not honest employers, and we must all stop such behavior together.

Those who are bothered by social justice and equality will certainly not and should not be with us.
I think the decision we made is the best New Year's greeting to the workers, the backbone of our society.

I wish all citizens a Happy New Year, a year in which I hope we will boldly step into a better, more stable, and more prosperous future together," Nikšić stated.