IMF Warning at Risk of Pay Growth

In a response to Radio Free Europe, Ruud Vermeulen, the resident representative of the International Monetary Fund in Kosovo, said that the “new jobs, including those in the justice and health sector, as well as a modest increase in the pre-priced salaries for 2018, could be made in accordance with the regulation for the wage fund”.

Furthermore, he said the huge increase in salaries in some public sectors would create discontent and pressure for rising salaries in other sectors, which could jeopardise wage regulations.

“also, will jeopardise the possibility of new employment that is priority”, Vermeulen said.

By the end of last year, Kosovo Prime Minister Ramush Haradinaj had made a decision to raise salaries for the government cabinet, meanwhile later for justice system employees.

This decision was subsequently suspended by Prime Minister Haradinaj himself, following a remark the Kosovo Anti-Corruption Agency had introduced, which had named the prime minister's decision illegal.

Meanwhile, Haradinaj's opposition parties have also sent the decision to the Constitutional Court for interpretation.

The Government's decision had also influenced health and education sector employees to demand wage increases. Although by the beginning of this year, public sector employees have received the 4 percent increase in salaries, the United Trade Union for Education and Culture has expressed disappointment with the current growth, demanding that growth be realised between 15 and 25 percent.

Even doctors experts in public health institutions have sought classification, which would enable them to raise wages.

The Law on Salaries, which regulates wage levels for all employees in the public sector, has not yet been adopted in Kosovo.

In 2010 the Law was passed on civil servants' salaries, which was not implemented due to a lack of financial means. The way of the wage system for other sectors has been implemented by other laws and regulations.

Zecir Beckoll, spokesman at the Ministry of Public Administration, says that to regulate this issue, this minister has already prepared the concept of the law on wages already found in the Ministry of Finance.

This document precedes drafting the new wage law, in which all categories and institutions that receive salaries from the Kosovo budget will be included. This will be the unique law in which all categories and institutions that receive salaries from the Kosovo budget” will be included, Bekoli says of Radio Free Europe.

However, with a more critical voice on the prime minister's decision to raise salaries has been presented to the Independent Union of Kosovo (BSPK). They are threatened that if the Government decides to raise salaries for its officials, no protests or strikes will be missed. While salary growth by 4 percent, according to BSPK, is insufficient.

Avni Aydin, chairman of BSPK, told Radio Free Europe, that the Government of Kosovo must find means for wages to be raised in the public and private sector.

“There is growth is abuse, humiliation is degradation of human virtue. We've asked for salary increases for both sectors' employees, taking the prime minister's salary cofficiator for 4 percent”, Aydin said.

But leaders of the International Monetary Fund in Kosovo say it is important that public sector wage increases be maintained and controlled in order to avoid effects in the private sector as well. Maintaining this balance, according to the IMF, is important for competitiveness and job creation.