SDA: FBiH Government should have decided to increase the minimum wage to 1,200 KM with prior reduction of contributions

(Patria) - The FBiH Government's decision to increase the minimum wage to 1,000 KM, without a accompanying set of fiscal laws to reduce contributions and relieve the economy, is a risky move that can have very damaging consequences for the economic stability of the Federation, according to the Party of Democratic Action.

In a statement, they state: "The result of such a decision by the FBiH Government can result in layoffs, closure of small businesses, price increases, jeopardizing the competitiveness of domestic companies, and widespread dissatisfaction due to wage compression".

"With such a unilateral decision and avoidance of reducing wage contributions, the Government is trying to reach even deeper into the pockets of entrepreneurs and citizens and thus cover up budget deficits caused by unprofessional and arrogant policies pursued in the first two years of the mandate," say SDA and conclude:

"We call on the FBiH Government to urgently proceed with drafting a set of fiscal laws that will reduce contributions, relieve the economy, and enable wage growth for employees in FBiH, especially those with the lowest incomes whose minimum wage must be at least 1,200 KM".