The Federation of Free Trade Unions of Serbia (SSSS) and UGS “Nezavisnost” today rejected the proposal of the Government of Serbia to increase the minimum labor price from four to six percent in 2021, said the representatives of those two members of the Social and Economic Council.
Secretary of the SSSS Council, Zoran Mihajlovic, said for Beta that the Government’s proposal is below all expectations.
Representatives of the Government of Serbia in the working group for negotiations on the increase of the minimum labor price for 2021 proposed an increase of four to six percent in today’s negotiations.
Employers supported such a proposal with a concession to raise the non-taxable part of the salary from 140 euros to 160 euros and to reduce taxes and contributions on salaries, and the unions demand that the minimum wage be equated with the minimum food basket of 310 euros as agreed two years ago.
“The government’s proposal is absolutely unacceptable and below any minimum we expected,” said Mihajlovic.
He added that they were surprised by the government’s proposal and that “such a rate of increase in the minimum wage will never reach the value of the minimum food basket.”
Mihajlovic estimated that with such a minimal increase in the price of labor, the promise of the President of Serbia, Aleksandar Vucic, on an average salary of 900 euros in 2025 cannot be realized.
The president of UGS “Nezavisnost”, Zoran Stojiljkovic, said that the government’s proposal was “absolutely unacceptable”.
“There are clear economic criteria for calculating the percentage increase in the minimum labor price and the social value of the minimum consumer basket,” said Stojiljkovic.
He added that the growth rate would be higher than the government’s proposal if only elements from the projection of gross domestic product (GDP) growth were taken into account on its growth of six percent next year and projected inflation of two percent, without taking into account the minimum consumer baskets.
Stojiljkovic said that a great struggle of the unions is ahead to reach a better compromise solution on increasing the minimum wage for all employees.
“No one in this country, who does anything, should go home at the end of the month with a salary of less than 300 euros,” said Stojiljkovic, Beta reports.
