Five months after the minimum wage was increased in Republika Srpska, the effects are being analyzed. The decision to raise the lowest salary to 900 BAM had a positive impact on trade unionists, but not so much on employers who are now demanding that this category be legally defined in the future.
The increase in minimum wage by 200 BAM did not result in mass layoffs as feared by employers. Despite the rise in prices, the increase in purchasing power is not significant. The Union of Trade Unions reports a larger inflow into budget funds, but the chain increase in salaries did not occur.
President of the Federation of Trade Unions of the RS, Ranka Mišić, acknowledges that while the lowest salary did not have negative consequences, it has become the primary payment for many employers, leading to a reduction in total employees. Meanwhile, the RS Employers’ Union argues that the decision on the minimum wage was made without considering macroeconomic indicators, leading to a decline in industrial production.
The Government defends its decision, stating that the increase protected workers and boosted the budget. In the Federation of Bosnia and Herzegovina, legal solutions are still pending to fulfill the promise of increasing the minimum wage to 1,000 BAM.