News in English     | 18.08.2020. 10:54 |

Simić:There are two main reasons for statistical growth of average salary in BiH

FENA Darinka Mitrović

SARAJEVO, August 18 (FENA) - The average monthly paid net salary in Bosnia and Herzegovina in June amounted to 955 KM and was nominally higher by 4.9 percent compared to June last year, and higher by 0.4 percent compared to December last year, according to the BiH Agency for Statistics.

Economic analyst Borivoje Simić believes that there are two main reasons for the statistical growth of the average salary, although it is known that a large number of workers had their incomes reduced during the pandemic, and a significant number of them lost their jobs.

“One reason is in the methodology of the Agency for Statistics of BiH, which takes into account only the payments made in the current month for the previous month. This means that an employee whose salary has not been paid by the employer for the month in which the calculation is made has not entered the statistics. There are many that did not enter the statistics in the sectors affected by the pandemic (hotel and tourism, textile industry, manufacturing, transport, etc.) in which the average salary is lower. Since they did not enter the statistics for calculating the average salary, those with higher salaries remained, including public administration and social insurance, where the situation with payments was unchanged, so the average salary increased,” Simić said in an interview for FENA.

Also, as he added, during the pandemic a significant number of people lost their jobs (although the number of employees increased in recent months, it has not yet reached pre-corona levels) in the mentioned activities where average wages are lower, therefore with their outflow the basis to calculate the average wage improved, which led to a statistical effect that net wages in recent months compared to last year recorded an increase.

The second reason, Simić believes, is that Republika Srpska raised the minimum wage to 520 KM and that decision has been in force for some time, which has affected the growth of the average salary in RS over the past few months, and thus in Bosnia and Herzegovina.

According to the BiH Agency for Statistics, the lowest average net salary in June this year was in the sector of providing accommodation, food preparation and serving and amounted to 563 KM, in construction it amounted to 639 KM, while the average net salary in administrative and support service activities amounted to 657 KM.

In financial and insurance activities, the average net salary in June amounted to 1,578 KM, in the production and supply of electricity, gas, steam and air conditioning 1,460 KM, while the average net salary in information and communications amounted to 1,369 KM.

In BiH, the average monthly gross salary in June amounted to 1,475 KM and was nominally higher by 5.1 percent compared to the same month last year, and higher by 0.4 percent compared to December last year.

(FENA) A. B.

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