The deputies of the Social Democrats will submit an amendment to the amendments to the Labor Law proposed by the representatives of the parliamentary majority. The aforementioned amendment will define that the minimum wage cannot be lower than 50 percent of the average wage, which would currently amount to just over 260 euros, the SD stated.
"The proposal of the representative of the parliamentary majority is to increase the minimum wage to 250 euros, which is about 48 percent of the average wage. The adopted Convention of the International Labor Organization (ILO) on wages says that the minimum wage should be 50 percent or more than the average wage. It is one of the the reason why we proposed that the minimum wage cannot be lower than 50 percent of the average wage, which is currently slightly over EUR 260. In addition, it is systemically correct and more favorable for employees that the lower limit of the minimum wage is not determined in absolute amount but in percentage, because in the event that the average salary increases, it is logical that the minimum salary also increases," SD points out.
The announcement states that the amendment of the SD deputies will also provide for a protective measure for employees in the event of a drop in the average wage, which could lead to a decrease in the minimum wage.
"We will define it in such a way that in the event of a drop in the average wage, the net amount of the minimum wage cannot be less than 260 euros," the Social Democrats state. "In addition, as we pointed out at the Parliamentary Committee for Health, Labor and Social Welfare, we will propose that the Parliament, along with changes to the Labor Law, which will increase the minimum wage, adopt a conclusion in which it will task the Government of Montenegro to, in cooperation with social partners proposed a reduction in the fiscal burden of labor costs. Legislative changes aimed at the aforementioned reduction need to be passed by the Parliament before the start of the application of the new amount of the minimum wage," said the SD.
They believe that this is very important in the situation of "the present illiquidity of a significant number of micro, small and medium-sized enterprises, which is further aggravated due to the negative consequences of the COVID-19 pandemic, as well as due to the fact that the tax (fiscal) burden of labor costs is the highest in the region."
"It is extremely important to increase the minimum wage, which even with the proposed increase is among the lowest in the region, but also to ensure that, as a result of such necessary measures, the survival of a certain number of existing jobs is not potentially called into question and the "grey market" expands, because we are witnesses to the complexity of the current environment in which the majority of employers in Montenegro operate", the SD announcement states.
Bonus video:
