Analysis of Potential Effects of Raising Minimum Wage in Federation of BiH

Friday, July 30, 2021

The last time the minimum wage was determined in the Federation of Bosnia and Herzegovina was in 2016, and there is no doubt that it needs to be raised. However, an excessive and sudden increase may lead to undesired consequences and jeopardize the very groups of workers this help is intended for. Inter alia, it may lead to the rise in youth and women unemployment, threaten the competitiveness of private sector and lead to significant rise in wages in public companies, even in cases of workers who currently earn significantly above the minimum wage. Therefore, the key question is how to strike a balance between real needs and unrealistic demands and this analysis is aimed at offering several guidelines to that effect.

The Analysis is available HERE

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