Average salary in Kosovo has been wrongly calculated for years

The Kosovo Statistics Agency for 7 years, 2012-2019, has wrongly calculated the average salary in the country. This is confirmed by the latest report from this institution: “Po pay level in Kosovo 2012-2019”, published this month.

The average wage in Kosovo for 2019 was reportedly 602 euros.

The ASS, to achieve this figure, has calculated the wages of 363 thousand workers in the country, but the methodology used by the ASS in the average wage estimate in Kosovo, according to economic experts, is proving wrong, as the salary of 602 euros is estimated to be an average ( simple) salary in the private sector, in public, as well as in public enterprises. So the average wages of these three categories are divided by 3 and thus reached the value of 602 euros (bruto).

So this estimate is assumed that approximately 121 thousand workers work in the private sector, 121 thousand in the public sector and 121 thousand in public enterprises. However, this does not reflect reality on the labour market in Kosovo, as, according to unofficial data, about 72% of those employed in Kosovo work in the private sector.

In a post on his page in “Facebook” early this month Visar Vokri, economics expert, from the Institute “Riinvest”, says that according to his calculations based on published data, the average gross salary in 2019 in Kosovo would have to be about 470 euros, so 132 euros less than that reported by the competent institution for this data, AK.

Vorri, meanwhile, for “Zrin” has stated that instead of the honorable average, where the relative weight of each of these sectors would be reflected, The AKS has used arithmetic average, which in concrete cases assumes that the number of employees in these three sectors is the same.

According to official data published by the same institution, the number of employees in 2019 was 363 thousand, with about 72% of them employed in the private sector. According to a simple calculation, based on this data, the average gross salary in Kosovo in 2019 would amount to about 470 euros -- that is, 132 euros less than the reported” -- says Vorkri for “Zerin”.

Contacted by “Voice”, the Kosovo Statistics Agency has acknowledged that the estimate has been made a mistake, as they have said they are reviewing the publication.

In clarification of “Zit” The AKS acknowledges that the average salary of the three sectors, including 363 thousand workers, has been released by the dateable index (the average salary), which is not practiced in these cases.

The data received by the responsible institutions, presented in this report, has been analysed, calculated and distributed through the report, which has been made public. The data presented and published by the sectors has been revised, and the resulting index (intermediate file) has been released, not practiced in these cases”, says the ASC explanation.

Kosovo's Statistics Agency also states that, after “Zit”'s interest in the issue, the revision is under way and that error will be improved.

Therefore, as a result, the AKS reports to all users of official statistics that it is analyzing and reviewing the report in question and that at the moment of finalisation it will publish the revised report”, says the AK statement for “Zerin”.

This institution also states that data from the unexplored economy (informity) is not included in the report.

“Vlen points out that the inclusion of data from the non-information economy (informity) in the data presented would level the same average salary presented in the report, but this issue belongs to the revision process for a longer-term”, highlighted in the ASC's response to “Zerin”.

Based on data that the AKS has so far published for the average salary in the country, it turns out that our country has the average salary among the highest in the region.