Republika Srpska Pay Hits 1,695 KM, Basket Tops 2,936 KM

The Union of Trade Unions of Republika Srpska released its wage figures for August today: the average net salary came to 1,695 KM (convertible marks), seven marks higher than in July, but 0.9 percent lower in real terms once price growth is factored in. The number carries direct weight for Serbia, since Republika Srpska is the Bosnian entity where most ethnic Serbs in Bosnia and Herzegovina live, and its currency is tracking the same food price increases that consumers in Serbia are feeling.

According to the Union’s data, the highest average salary was paid in professional, scientific and technical activities, at 2,286 KM, while the lowest was recorded in accommodation and food service, in other words hotels and catering, at 1,286 KM. The gap between the best paid and worst paid sector tops 1,000 KM.

How much of the consumer basket does the average salary cover?

The trade union’s consumer basket for August came to 2,936.62 KM, meaning the average salary covers only 57.7 percent of it. The gap between the basket and the salary stands at 1,241 KM. The largest share of the basket goes to food, at 1,354 KM, followed by housing and utilities at 731 KM, clothing and footwear at 245 KM, transport at 226 KM and household upkeep at 168 KM.

The Union of Trade Unions warns that the drop in real wages is not an isolated case:

It is concerning that net wages fell in most industries, in as many as 14 out of 19 sectors, due to unjustified and uncontrolled growth in the prices of goods and services in Republika Srpska. Every new price increase is unjustified, because we have witnessed, not only this year but in previous years as well, that all prices rose as the prices of energy, raw materials and similar inputs rose, yet those same prices were never lowered when energy prices fell.

According to the Union of Trade Unions of Republika Srpska, real wages fell in 14 of the 19 industries it tracks compared with the previous month, even as prices kept climbing.

The union is calling on the government of Republika Srpska to tighten control over how prices are set and to extend the existing margin cap to more foodstuffs, including pasta, rice, meat and meat products, as well as fruit, vegetables and processed produce. It also wants tougher penalties for stores that break the rules, up to and including a ban on operating.

The conclusion the Union draws from August’s numbers is blunt:

A wage increase is no longer a choice, but a necessity and an existential need. While prices rise and wages stagnate or fall behind, the living standard of workers and their families is further endangered.

That was the message from the Union of Trade Unions of Republika Srpska, which also signaled that pressure on the government over prices will continue until margins are placed under stricter oversight.