170 euros is currently. Kurti says 250 euros, unions 350 euros. The Government of Kosovo, under the leadership of Albin Kurti, announced the increase of the minimum wage to 250 euros. However, the Independent Trade Union of the Private Sector is insisting on raising the minimum wage to 350 euros, because according to them, a year ago, Kurti had said something else. The increase in the minimum wage in Kosovo has not occurred since 2011.
By Fatos Shala
From 170 euros currently, the minimum wage in Kosovo is expected to increase to 250 euros. This promise was made by the head of the Government of Kosovo, Albin Kurti. “By raising the minimum wage to 250 euros for 40 working hours per week and raising the wage threshold, which is not taxed at the minimum wage level, we will ensure that those with lower wages have more money in pocket at the end of the month “, declared Kurti.
The Prime Minister has included this promise in the governing program.
However, the chairman of the Independent Trade Union of the Private Sector, Jusuf Azemi, does not agree with this. He says that a year ago, Kurti had said something else and according to him, the minimum wage should be 350 euros. “The prime minister promised a salary of 250 euros, just a promise like the one of March last year. The same prime minister promised that the minimum wage should be 350 euros. “He claimed last year that ‘in the salaries they receive in Kosovar private companies, they can not even pay their electricity, water and credit bills.’
Azemi further said that they will be critical of the Kurti government, in case the private sector workers are not treated properly.
“Except for the contracts signed by public-private companies, all other employees will not sign a salary below 350 euros. In most cases we are present where employees of private companies are signing employment contracts with company owners. So far, we have not signed any contract under the salary of 350 euros “. The President of the Kosovo Chamber of Commerce, Berat Rukiqi, said that there are many factors that must be taken into account when setting the minimum wage.
According to him, it is a methodology that determines the salary, including the factor of economic growth, employment in the country, the cost of living and others. “Very few companies in Kosovo have been left with a minimum wage. The cost of labor has increased. “Few companies are left with a salary of 200 euros, because no one comes to work with this salary anymore.” In addition, Rukiqi added that in Kosovo, informality in employment must be fought first, as a formal contract will increase the rights and well-being of workers.
Over 100 million euros for veterans
Agim Shahini, president of the Kosovo Business Alliance, says that the announcement of the increase of the minimum wage in Kosovo by the government is not a decision that meets the criteria of the law for increase of the salary and this will have an impact on the state budget over 100 million euros on an annual basis.
According to him, there are over 40 thousand war veterans in the country, who are paid with this salary and will depend mainly on the country’s budget.
“The salary should be increased only according to the law, and the law can change. “But first the law must change and then the minimum wage must change and the wage must also increase.” –
Shahini estimates that the minimum wage in Kosovo can not be over 210 euros in any form, referring to the law and criteria for wages, and only in case of change in the law, the minimum wage can be increased. According to Shahin, the minimum wage does not affect the increase of the welfare of the citizen in the country, because the minimum wage in Kosovo is a small number compared to the larger number of employees in the private sector who receive higher wages.
“In some businesses it will undoubtedly have a negative impact, because they do not have the potential to keep all employees at work with the new salary, while for some others, it will be invisible because salaries are already higher. “With the increase of the minimum wage, the challenge will be micro-enterprises and households, which, after being in crisis, will be forced to give workers a lower wage than the usual one.”
The increase of the minimum wage in Kosovo has not happened since 2011. According to the law, there should be an increase of the minimum wage every year based on the economic growth of the country, although this has never happened, due to political disagreements.
The private sector, over the years, has not managed to follow the trend of wage growth, as has happened in the public sector. According to the data of the Kosovo Agency of Statistics, in 2012, the average net salary in the public sector was 384 euros, while according to the latest data, it has reached over 500 euros. In the private sector, the average net salary in 2012 was 333 euros, while according to the latest data, it does not reach more than 350 euros.
Currently, the minimum wage in Kosovo is 130 euros for employees under the age of 35, and 170 euros for employees over the age of 35, which has not changed since 2011.