A raise is a impossible mission

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After some unions announced that they would ask the Government of Serbia to start negotiations on a new adjusted price of the minimum wage as soon as possible, economist Sasa Djogovic does not expect an increase in the “minimum wage” this year.

One of the main reasons Djogovic sees as an obstacle to raising the minimum wage in Serbia this year is that Serbia has not yet got a new government.

“The new Government of Serbia has yet to be formed, and those negotiations on the minimum wage will probably be there in the fall.” So I do not believe that the minimum wage will increase this year, I do not believe in that scenario at all, possibly if the Government ‘squeezes out’ some one-time payment to some categories of residents, “Djogovic said for the Nova.rs portal.

Djogovic expects that he will “take longer with the formation of the government”, and that it will take a period after he is formed to “breathe a little”, so he expects talks on the minimum wage sometime in October. Our interlocutor points out that the union’s position that the minimum goes to the height of the minimum consumer basket is completely reasonable and rational.

“Talks can start with the formation of a new government, and then it can be seen through the budget for next year to what level there could be an increase. There will certainly be an increase in the minimum wage, but I do not believe it will happen. it will be up to the level of the minimum consumer basket , because its value will significantly increase with this inflation dragon “, said Djogovic for Nova.rs and added that it remains to be seen how far the new minimum labor price will be from the value of the minimum consumer basket.

Speaking about the future increase of the minimum wage in Serbia, Djogovic estimated that this new difference in the minimum labor price would be compensated at the expense of the budget, because in this crisis, as he states, employers will already have increased electricity and gas prices. the increased price of the minimum wage is also falling on businessmen.

“If we brag so much about the good situation, and the situation is such that the state records minuses, even in the conditions of increased budget revenues, we will have to borrow again so that we can service all our obligations, so those policies of indiscriminate giving of money are missed. pensioners, young people, certain professional groups … “, said Djogovic.

He assessed that such one-off measures do not significantly improve the situation of those who are the worst in this period of inflation.

“We must focus these funds on those categories of the population who have incomes up to the minimum consumer basket and receive certain benefits accordingly, whether through the privileged price of utilities, electricity or gas, which will increase in price in the coming period, or through some one-time financial support because those categories are socially endangered “, pointed out Djogovic.

The socially responsible government of Serbia should have such a focus, and not a populist one, said the Serbian economist.

“The Government of Serbia and the President of the Republic should deal with socially responsible politics, and not let the President lead that policy through populism and marketing. It is a complete irresponsibility, state amateurism and unprofessionalism … Waste of money in the last and first part of this year,” completely indiscriminately, burdens the budget, and does not contribute to solving social problems in society, “said Djogovic.

By the way, Dusko Vukovic from the Federation of Independent Trade Unions of Serbia said earlier for the Nova.rs portal that the minimum consumer basket is already at the level of 42,000 dinars, and he asked that “the minimum monitor the amount of this consumer basket”.

On that occasion, he estimated that it would be correct and the only responsibility towards a large number of people who receive the minimum to raise it to a minimum of 43,000-44,000 dinars from the current 35,000.

“We continue to demand that negotiations on the level of the minimum wage be renewed very urgently, and it must be at the level of 43,000-44,000 dinars, bearing in mind that the minimum consumer basket will certainly exceed that amount by the end of the year if we see food prices rising and other living expenses “, said Vukovic.

Even when negotiations on a new increased price of the minimum wage were held last summer, the unions stated that a dignified life in Serbia requires around 1,000 euros, because for them the minimum wage is literally for “mere survival”.

By the way, the lowest minimum in Kosovo is around 130 euros for young people, and 170 for those over 35, followed by Albania with 248 euros and BiH with 300. While Turkey (328 euros), Bulgaria (332) have higher minimum wages than us. ) and Northern Macedonia (359).

The highest minimum in Europe is in Luxembourg – 2,360 euros, according to “Eurostat” data transmitted by the Belgrade media, Nova reports.