Businesses have not followed government’s policy to increase salaries. Although salaries at the public sector were raised with 10%, in the private sector they remain the same. But why don’t private businesses raise salaries?
“It is not about a lacking will from private entrepreneurs to have employees who can be more motivated and have a better life at the private sector. But competition, taxes, products and higher prices for energy and water, are pressures that don’t let entrepreneurs increase payments”, said Luan Bregasi from Business Albania.
Last year the economy grew with 4%, but payments of workers grew four times less.
Selami Xhepa, from the European Institution “Pashko” said that part of the problem comes from businesses, who are hurting themselves by keeping lower pays.
“The private sector doesn’t understand that keeping low salaries damages them as well. The safest way for them to increase sales, is by raising salaries”, he adds.
Salaries in Albania have been stagnating for years, especiall in the private sector, while prices keep growing every year. This has placed the economy in a vicious circle, with dropped revenues forcing people to purchase less.
“90% of the employees in the economy have low salaries and they cannot make a difference in the purchase power. As result, this keeps low sales and lower revenues for their employers. This vicious circle needs to be stopped, and I think it is up to employers”, Xhepa adds.
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