Recently, discussions about the minimum wage have come back into focus. The appearance of the Prime Minister of the Republic of Kosovo, Mr. Albin Kurti, at the electoral congress of the Independent Trade Unions of Kosovo (BSPK) and his renewed promise to raise the minimum wage brought this issue back into public debate. The head of the executive reiterated his government’s position that the minimum wage will be 250 euros, while the newly elected chairman of BSPK insisted that the minimum wage should be set at 300 euros.
Although the increase of the minimum wage has been frequently discussed, partly due to frequent elections, the minimum wage has never been changed since it was first set in 2011.
The Labor Law obliges the government to determine the minimum wage at the end of each year, based on the proposal of the Economic and Social Council (ESC). This Council is chaired by the Ministry of Labor and Social Welfare (MLSW), which is responsible for forwarding the Council’s proposals for approval to the Government. The last meeting of this Council was held on November 18, 2020.
The determination of the minimum wage level cannot be a matter of wishful thinking, neither by the government nor by the trade unions. The minimum wage is the result of social dialogue. According to the law, this dialogue in Kosovo takes place within the Economic and Social Council, which has been practically non-functional since last year.
The Institute for Social Policies “Musine Kokalari” calls on the Government of the Republic of Kosovo to urgently make this Council functional, where social dialogue regarding the minimum wage should take place. The law also clearly defines the criteria that must be taken into account when calculating the minimum wage.
Recent socio-economic developments, especially those related to the pandemic, make social dialogue even more important and necessary. They also make determining the new minimum wage level based on these developments essential, so that the labor market can be better regulated and employment can become a means of well-being for workers. Kosovo needs employment, but it equally needs dignified and secure jobs.