Employers in RS struggling with minimum wage of 900 BAM, seeking suspension of decision or relocation of companies to FBiH

(Patria) - The Union of Employers and the Chamber of Commerce of Republika Srpska have submitted an initiative to the Government to suspend the Decision on the minimum wage for this year, which amounts to 900 marks.

If this does not happen, they claim, Republika Srpska will face a decrease in the number of employed people in the economy, a drop in productivity and competitiveness, an increase in inflation and the informal economy, the closure of companies, and the relocation of headquarters and activities to FBiH.

They state that the trend of decreasing order volumes from abroad continued in January, that contracts for this year have not yet been concluded, and that foreign trade partners do not accept any option of price increases, writes Capital.

“Many are announcing the relocation of their business to the Federation of BiH or other countries in the region due to the deteriorating business conditions,” they announced.

They state that the minimum wage in Republika Srpska is 460 euros, while in the other entity it is 316 euros, in Serbia 404 euros, and in Montenegro 450 euros.

“The joint position of the Union and the Chamber is that the catastrophic consequences threatening our economy can still be prevented, but it is necessary to act promptly and suspend the application of the Decision on the minimum wage, until changes in the legal framework are prepared that will contribute to reducing the burden on the economy, increasing employee income, and increasing public revenue,” the business community announced.

Also, one of their proposals is to hold a meeting with the President of Republika Srpska as soon as possible.