A new meeting is being held today on the amount of the minimum wage. Unions are "shocked" by the government's proposal, employers believe that an increase in the minimum wage would have a negative impact on their business, and the government proposes an increase greater than the planned 10 percent
The Ministry of Finance announced today, during the third round of negotiations on the minimum labor price for next year, the possibility of an increase above the previously announced 10 percent, said the secretary of the Federation of Independent Trade Unions, Zoran Mihajlović.
He stated that the collegium of the Social and Economic Council should be held tomorrow, where the new offer of the Ministry of Finance should be specified and how much better it would be than the 10 percent offered.
"Tomorrow we will know more details and whether that offer is more acceptable to the unions," Mihajlovic said.
Negotiations by representatives of the state of Serbia, trade unions and employers, Fr minimal cost for 2025 continued today. The Ministry of Finance should propose the exact amount of the increase the minimum, he writes New economy.
At the last meeting, on August 19, The Ministry proposed to increase between eight and ten percent, that is between 50.000 and 52.000 dinars.
The representative unions - the Federation of Independent Trade Unions of Serbia and UGS "Nezavisnost" - demanded an increase of about 30 percent or an amount of 60 percent of the value of the average consumer basket, which is about 61.800 dinars.
The employers' proposal is that the minimum wage is around eight percent, that is, how much the projected growth of gross domestic product (GDP) and inflation should be in 2025.
Unions "shocked"
The unions are "shocked" by the state's proposal and expect a new proposal.
Commenting on the so far unsuccessful negotiations between unions and employers, sociologist and activist Jovo Bakić said previously for "Vreme" as he believes that even increasing the minimum wage to 60.000 dinars cannot cover all costs.
"For those 60.000, you barely cover the bills, food costs if you manage, and that's all." To me, this union proposal seems rather modest. On the other hand, employers evaluate their entire lives in terms of dinars, and that is a lot for them," explains Bakić.
If, nevertheless, the salary increases, and a third of the employers, as they threatened in that case, start firing workers, Bakić believes that the economy would not be able to function.
"We are a country with a catastrophic demographic picture." Only if we imported workers, the economy and public services would function", says Bakić.
More than a third of employers do not want to increase the minimum wage
The Union of Employers of Serbia usually conducts a survey among employers before negotiations.
According to the results they received, about 35 percent of them are not in favor of an increase in the minimum wage and believe that it would have a negative impact on their business. One of the first measures they would take in that case is to reduce the number of employees and increase the prices of services and products.
Employers, as it was said from the Union, if there is a major increase in the minimum labor price, they expect some intervention from the state in terms of increasing the non-taxable part or reducing taxes and contributions.
Equalize the amount of the consumer basket with the minimum wage
For years, the unions have demanded that, in accordance with the agreements within the SES, the minimum wage be equal to the amount of the minimum consumer basket.
And this was previously pointed out by the UN Committee for Economic, Social and Cultural Rights for the Republic of Serbia in 2022, when it wrote that it was concerned about the inadequate amount of the minimum wage, which is lower than the amount of the minimum consumer basket, with a recommendation to increase the minimum salary, and regularly adjusts to the cost of living in order to ensure a decent life for workers and their families.
The amount of the minimum wage is proposed by Aleksandar Vučić
Negotiations on the minimum wage between the social partners each year for the following year begin on August 15 and should be completed by September 15, and if an agreement is not reached, the percentage of the minimum wage increase is determined by the state.
In recent years, the amount of the minimum wage before the start of the negotiations was announced by the President of Serbia, Aleksandar Vučić, before the start of the negotiations themselves, and he did so this year as well. For him, 52.000 dinars is quite enough as the minimum price of work. The Ministry of Finance entered the negotiations with exactly that amount.
Source: New Economy
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