• Friday, 05 July 2024

Two minimum wages cannot cover basic living costs

Two minimum wages cannot cover basic living costs
Skopje, 2 October 2021 (MIA) – A four-member family’s minimal costs have increased by MKD 214 (EUR 3.48) in comparison to July. The Macedonian Federation of Trade Unions (FTU) has calculated that a family needs to bring in MKD 34,342 (EUR 558.60), and if there is at least one pupil in the family, those expenses increase by around MKD 8000 (EUR 130.13). The FTU says that an average salary, or the combined amount of two minimum wages, is not enough to cover the union minimum basket. Living costs continuously increase while wages remain stagnant. The most money goes on food and drink – MKD 14,633 (EUR 238.02) and paying utility bills – MKD 10,818 (EUR 175.99). Personal hygiene costs amount to MKD 2382 (EUR 38.67), and transport costs amount to MKD 2529 (EUR 41.06). The beginning of the school year is an added financial burden, because one student alone requires at least MKD 8,000 (EUR 130.13) minimum. The State Statistical Office (SSO) also notes an increase in living costs. According to the published data for August, the cost of vegetables has increased by around 15%, cheese and curds have become 1.1% more expensive, meat costs have increased 0.9%, bread and wheat has become 0.7% pricier and the cost of milk has increased by 0.6%. “If the increase of living costs continues rising at this level, then not even three minimum wages would be enough to reach the growth of the union minimum basket,” according to the FTU. They warn that if the minimum wages remain stagnant, meaning that it keeps being coordinated without taking the unions’ notes into account, the population will get poorer. The FTU has been demanding for minimum wages to amount to at least 60% of average wages for a while, and during the last adjustment in March 2021, it requested the GDP drop not be taken into account as one of the three parameters of adjustment, but their suggestion was not accepted. “It’s clear that we need living wages that will enable us, as workers, to afford the expenses of one market basket on one salary, without worrying about our existence,” the FTU tells MIA. The Ministry of Labor and Social Policy says that wages have increased in the country, calling to official statistics for July this year which shows that net wages have increased by MKD 1,309 (EUR 21.24). “According to the SSO’s data, the average net salary for July 2021 which was published in September 2021, now amounts to MKD 28,540 (EUR 461.73) which is MKD 1,309 (EUR 21.24) higher than July 2020, which is a 4.8% increase. Our expectations are that wages will continue to grow, which will affect the citizens’ living standards,” according to the answer MIA received from the Ministry. In regards to the FTU’s suggestion to disregard the GDP’s negative growth while coordinating minimum wages, the Labor Ministry says that the law has determined correction criteria and any change of this criteria must be discussed within the confines of social dialogue. “Minimum wages are regulated by the Law on Minimum Wages. The minimum wage is revealed every year in March, becoming applicable in April. The law has criteria for correcting minimum wages. The current legal solution, i.e., the correction criteria, has been established by social partners. That’s why we think that any change to the criteria which will affect minimum wages should be the subject of social dialogue between social partners,” the Ministry says. The minimum wage in this country stands at MKD 15,194 (EUR 245.55). A new adjustment is expected in March next year. Three parameters are taken into account during adjustments: 1/3 of the growth of average wages, 1/3 of the growth of the living cost index, and 1/3 of the realistic GDP growth. Biljana Anastasova-Kostikj Translated by Dragana Knezhevikj