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How much does the salary increase cost, 340 mln euro cost in the budget for 2 years

2023-04-07 16:27:59Fokus SHKRUAR NGA REDAKSIA VOX
How much does the salary increase cost, 340 mln euro cost in the budget for 2
Edi Rama

The cost of raising wages for state employees will not be so negligible for the budget.

From the estimates of the Ministry of Finance, the extra expenses that are added to the budget only as a direct effect of the salary increase is 38 billion ALL, or about 340 million euros until 2025, when it is intended that the average salary will have exceeded the level of 900 euros, from 563 euros that is currently estimated.

The salary increase will have two stages: one that comes into force in April and focuses on education, health, police, guard and firefighters and the second salary increase that will be undertaken in July 2024 when it is predicted that salaries of the central and local public administration to increase by 30 to 61 percent, based on the job position.

The Ministry of Finance promises that despite the 340 million euro effect of the increase in the salaries of the administration, work will be done in parallel to reduce the public debt. Meanwhile, the income collected from the extraordinary tax of electricity exporters will be distributed in the form of bonus for certain categories.

The increase of the minimum wage but also the average wage in the public sector, creates an increased cost for the private sector, which automatically has to increase the wage level to cope with the competition. The government has approved a decision to subsidize the categories of businesses whose salaries are higher than the level of expenses.

31 thousand businesses are expected to benefit from this scheme.

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