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Albanian employees have the lowest salary in the region, government officials record in relation to per capita income

2023-06-11 08:54:22Biznes SHKRUAR NGA REDAKSIA VOX

Albanian employees have the lowest salary in the region, government officials

In a heated regional competition, the Prime Minister of Albania has "promised" that the average regional salary in the state sector will reach 900 euros within two years, hoping that this will also attract the private sector.

However, most of the countries in the region already have the salary at these levels, both for the state and the private sector, making this regional competition lost from the start, as the entire region, except for Albania and Kosovo, in in 2022, it increased wages in nominal value at double-digit rates.

But not all the competition with the region can be called lost. On the contrary, at the level of the salary of the heads of state, it seems that those who emerge victorious are the heads of the Albanian state.

In the last law, they rewarded themselves with almost doubling of salaries, leading the region in nominal (net) value, but also deepening the difference with the citizens who mandated them and who today have the lowest per capita income in the region , together with Kosovo.

The data processed by "Monitor", based on the gross income of the presidents, the average monthly salary in the economy and the corresponding income per capita, show that with the latest increase, the gross monthly salary of the Albanian president of the Republic becomes 7 times higher than average monthly salary in the country, marking a record in the region.

The second president after Albania, that of North Macedonia, has this difference 4.8 times.

The President, in one year will be awarded a record in the region also in relation to the per capita income of Albanian citizens, with 5.5 times more, from 2.1 times this indicator in Serbia, which today has the highest average salary in the region. the highest per capita income, but the lowest remuneration for the president.

The International Monetary Fund expects the Albanian economy to grow by 2.2% in 2023, more or less on the regional average and lower than Montenegro and Kosovo, which are expected to expand by over 3%.

Such an expansion is not expected to accelerate the process of convergence (growth at faster rates to catch the EU average) not even with the region, not with other European countries, risking leaving the country with the lowest income again. low in the region, in relation to the EU average, which today are at 32%, according to Eurostat, the lowest with the exception of Kosovo.

In this path that it has chosen, with imposed movements, without any signal or measures for rapid economic growth, the government is once again destined to encounter obstacles that will slow down its pace, or may bring it down into the pits that can be opened in poor asphalt.

Wage growth, not accompanied by productivity, risks the return of high inflation, while the "reform" does nothing to solve the major problems of the economy, such as low regional competitiveness, lack of rules of the game, non-attraction of value-added investments and especially, the natural decline of the population, which is accompanied by high emigration, which are the biggest risks in the long term.

Therefore, the race started by the regional "anger" for the salary increase is destined to fail, without even starting!

Salaries of the presidents are led by North Macedonia for gross and Albania for net

The presidents of Albania and North Macedonia, after recent increases, lead in the region for the highest salaries.

For the Albanian president, the average monthly gross salary has increased to 425,000 ALL, or about 3,800 euros, while the net salary is calculated at 2,800 euros.

A month ago, even North Macedonia, after the decision of the Constitutional Court, decided to increase the salaries of officials by 78%. The Macedonian president is already paid 2,400 euros net per month, from 1,500 euros before, while the gross salary is higher than the Albanian one, at almost 3,700 euros.

The President of Montenegro receives 2420 euros net and 3400 gross. Next are the three presidents of Bosnia and Herzegovina with around 2,000 net euros each (3,100 gross euros).

The most underpaid in the region is the president of Serbia, whose net salary was increased to 1,700 euros in January (about 2,200 euros gross).

The data were obtained after "Monitor" research with journalists of the respective countries and regional media, as well as calculations for net or gross salaries in the salary calculator for the respective countries.

The average salary in the region, in 2022, the difference deepened to the disadvantage of Albania, Serbia leads

Albania and Kosovo had the lowest average salary in the region in 2022, at around 520 euros each (gross). Both states had the lowest growth in percentage terms, with 7.6 and 8.3% respectively, according to official data from the respective statistical institutes.

Compared to the third quarter of 2022, when "Monitor" published the regional salary comparison, the region has moved faster again. Serbia, North Macedonia and Bosnia-Herzegovina saw double-digit increases in their average wages.

Serbia is the country that is "winning" in the regional wage competition, which for 2022 was an average of 880 euros, while in December 2022, it jumped close to the level of 1000 gross euros (983 euros), according to data from the Statistical Institute of Serbia.

In relation to the income per capita of the population and the average salary in the country, the Albanian president is the highest paid in the region

"I am very relieved for the sake of the truth, because we come to pass a project, which we wanted to pass years ago and for which I fought every day of these years. We took this place when the classification table was as follows; 259 euros average salary, while Kosovo had 444 euros, North Macedonia had 504 euros, Serbia had 537 euros and Montenegro, 726 euros.

We were not just the last, but the last by a margin. Today the table is as follows. Kosovo, 504 euros; North Macedonia, 705 euros; Serbia, 763 euros; Bosnia-Herzegovina, 890 euros; Montenegro, 792 euros, and with today's vote, we pave the way for a process that in the course of this coming year, that is, in next April, it will bring us to 900 euros average salary", declared Prime Minister Rama during the session of the Assembly that approved the new wage law.

In fact, the data of the relevant statistical institutes of the countries of the region confirm that Albania and Kosovo have the lowest activity wages.

"Public administration and defense; compulsory social insurance; education; health and social work activities", with around 600 euros in 2022, while in other countries, salaries in the administration, education and health sector fluctuate between 800-1000 euros per month gross.

Albania also has the lowest salaries of doctors and teachers, according to the previous publication of "Monitor" for regional salaries, when the data were available for the 9th month of 2022.

The most successful are the governors, who quickly and at a high rate increased their salary (although they postponed the entry into force of the law).

The data processed by "Monitor" show that after the increase, the gross salary of the President of the Republic will be around 3600 euros, which compared to the average salary in the country in 2022 (520 euros) is almost 7 times higher, significantly deepened the difference between an average employee and a high functionary. The second country with the highest difference is North Macedonia (4.8 times), followed by Kosovo, with 4.1 times and finally Serbia, with 2.5 times.

Even in relation to the income per capita, the president of Albania has again captured the record, as his annual net salary is 5.5 times higher than the average annual income per capita of Albanian citizens, from 3.9 times which is the average of the region. The second is Kosovo, 4.5 times, due to the low level of income of its citizens (the lowest in the region).

Although Serbia is winning the regional average salary race, bringing it to almost one thousand euros at the end of 2022, its president is the most underpaid, relative to what Serbian citizens earn, at 2.1 times more.

North Macedonia increased the salaries of public officials by 78%

In April of this year, after the decision of the Constitutional Court, the officials of North Macedonia benefited from a salary increase of about 78%, according to reports from telegrafi.com, which for the main leaders means about one thousand euros more.

The President Stevo Pendarovski, the Speaker of the Assembly, Talat Xhaferi, as well as the Prime Minister, Dimitar Kovacevski, will have a bigger increase, Telegrafi in North Macedonia reports.

According to the new salary calculations, the Speaker of the Assembly will be the politician with the highest salary in the country, which will be 166 thousand dinars (2,698 euros), net.

The president of the state will receive 1500 dinars (25 euros) less, while the monthly salary of the prime minister will be 156 thousand dinars (2,535 euros).

The salary of the deputy prime ministers, with the new increase, will be from 122 thousand dinars (1,950 euros) to 129 thousand dinars (2,096).

A part of the unions pointed out that it is not humane that in conditions when ordinary workers spend the month with difficulty, the salaries of officials should be increased in this way.

The minimum wage in North Macedonia as of March 2023 reaches 20,000 dinars (325 euros), net./monitor

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