7 minutes agoMinimum wage: Kosovo remains far from neighbouring countries, bill “in drawer”
Periskopi(3 years ago)
(3 years ago)From April 1st of this year, Albania has made a minimum wage hike of between $34,000 and $40,000, making it about 350 euros. Meanwhile, in Kosovo, the situation is different, as the minimum wage has not increased since 2011, remaining the lowest in the region. A bill that [...]
The design, adopted in the first reading, must pass the second and third reading of the Kosovo Assembly and be signed by the country's president to enter into force. In accordance with the constitution's regulation, the bill had to be processed in second reading within two or three months of approval in the first reading, but this did not happen. However, since June of last year, the Bill has made no progress.
Based on the European Statistics Agency's data, Eurostat, the average salary in Kosovo remains smaller, far behind even compared to some of the neighbouring countries like Montenegro, Serbia and Northern Macedonia.
The minimum wage in Montenegro is around 362 euros higher (532.5 euros), Serbia around 290 euros higher and Albania, given the rise of April this year, about 180 euros higher.
The initiative for the growth of the minimum wage in Kosovo in 2022, which has not changed since 2011, relates to a time when prices of basic goods have increased significantly.
On the other hand, according to a survey by the Institute for Advanced GAP Research, over 100,000 workers in Kosovo are paid minimum wage and 94% of those affected by the minimum wage increase are private sector employees.
The findings of this report, which is based on Kosovo Tax Administration data, show that the gross salary increase to 264 euros affects about 30% of the labour market, or about 105 thousand employees. Of them, about 30,000 employees (28%) are employed in the majority and retail trade sector; 16 thousand (15%) in the processing industry; about 12,000 (11%) in gastronomy; about 11.8 thousand (11%) in financial and security activities; 8.5 thousand (.8%) in construction; etc. Over 94% of those affected by the minimum wage increase are private sector employees. Apart from a number of employees in the security sector, the minimum wage increase does not affect the public sector at all. With the minimum wage up to 264 euros, the ratio between the minimum wage and media increases significantly, from 43% to 66%.” said in the GAP publication.
According to World Economic Perspective data processed by the Nacional newspaper, Kosovo ranks as the poorest country in Europe for 2023 on this index, with a Bruto Internal Product per capita of $15,000 and $619 internationally. Albania ranks after Kosovo with $19,000 internationally.
We remember that during 2022 Kosovo has faced inflation that has exceeded decades of price against essential products that marked almost uncontrolled increases as a result of major inflationary pressures caused by the collapse of supply chains caused by Russia's war in Ukraine. As a Euro-eurod economy with strategic import value, Kosovo was directly exposed to the global crisis.
The World Bank report last year also estimated that the government's social packages were very high on <x0fra” and unable to ease the economic crisis Kosovo is facing, with inflation remaining the main problem.
