English

Payment of salaries in two parts?

Ilustracija

In the economic milieu like this one, our economy would not be able able to afford payment of salaries in two parts, in 15 days interval, say the employers. Members of the trade union think it’s not bad idea while pointing out that, first and foremost, we have to make sure the salaries are paid regularly every month and in gross, without paying taxes and contributions.

According to the most recent data provided by the Statistical Office of Montenegro (MONSTAT), average salary in Montenegro amounts to 511 EUR, whereas gross amount with taxes and contributions is 766 EUR. Minimum salary amounts to 193 EUR. Social partners of the Government, employers and trade union have been negotiating on the increase of the salary for a long time.

The Government is analyzing fiscal impact of such decision. According to some estimates, around 25.000 and 30.000 of employees work in the gray economy.

The very first person who suggested the system of salary payment in two parts should be introduced in Montenegro was Alekandar Damjanović, independent MP. He thinks it would be beneficial the economy since the money flow would be faster. “Pobjeda” asked the employers and the members of the trade union about the idea.

Union of trade unions thinks that would be another burden for our economy which is already fragile.

“The economy of Montenegro is characterized by unsettled relations between debtors and creditors, great number of companies not being liquid, huge number of blocked accounts, constant problems in financing businesses… Therefore, it’s unreal and totally unjustifiable to expect that business entities would be able to endure any additional burden that would endanger their sustainability”, explained the representatives of the Trade union.

However, so far none of the participants of the Working group has proposed the payment of salaries in two parts. Only comprehensive analysis could show pros and cons of this idea.

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