During the ILO-supported conference "The New Salary System in the Republika Srpska", in Banja Luka, Bosnia and Herzegovina on 27 August 2024, the Confederation of Trade Unions of the Republika Srpska (SSRS) presented a detailed proposal on how to enhance wage setting in the entity. The Prime Minister of the Republika Srpska, Mr. Radovan Višković, welcomed the proposal and committed to continue a process of negotiations through social dialogue.   

Earlier in 2024, the minimum wages increased in the Republika Srpska. The trade unions have welcomed the increase but has also highlighted shortcomings in the wage setting system itself. According to trade union research, over 30 per cent of wage earners are earning the minimum wage. This number is considered far too high. As a result, the average wage is low compared to the minimum wage. Moreover, collective bargaining remains weak in the Republika Srpska and no general collective bargaining agreement has been signed since 2016. 

Ms. Ranka Misic, President of the Confederation of Trade Unions of the Republika Srpska, highlighted the problems caused by the high percentage of workers receiving only the minimum wage. She pointed out that this practice does not only affect workers but also impacts tax revenue. Many workers officially earn minimum wages while receiving additional, unofficial payments in envelopes, which keeps the tax base low. Consequently, workers miss out on pensions and benefits due to their low official salaries. 

According to the union, an updated wage system would allow for differentiated minimum wages depending on levels of education and skills.      

Prime Minister Radovan Višković had studied the union’s proposal. While not fully endorsing it, he stated that “The proposal presented today by the Federation of Trade Unions of Republika Srpska is a good starting document based on which negotiations between trade unions, employers and the Government should begin”.  

During the conference, Mr Magnus Berge, ILO’s Workers’ Specialist for Central and Eastern Europe highlighted the relevance of ILO’s Minimum Wage Fixing Convention (Convention 131) and the Right to Organise and Collective Bargaining Convention (Convention 98). Both conventions are ratified by Bosnia and Hercegovina and should be reflected in the wage setting systems.  

The work to initiate social dialogue on the wage setting system was supported by ILO Office for Central and Eastern Europe and the EU-funded Employment and Social Affairs Platform (ESAP3).