The Government will provide monthly support in the amount of EUR 1,5 million so that companies pay a minimum salary of MKD 12,000 (EUR 195), said Finance Minister Dragan Tevdovski on Wednesday.

Tevdovski said the support would start in September, meaning that EUR 6 million of budget funds would be allocated by the year-end.

According to the Government proposal, which is discussed along with trade unions, chambers and employers, the budget support would be halved to EUR 750,000 per month as of March 2018.

"The funds for the support of companies are stipulated in the Budget review. There is room for increase of the minimum salary in Macedonia if one perceives the GDP structure, share of salaries and profits. In order to be certain that people's jobs are safe, we are designing measures for support of employers. It is crucial to fully pay the minimum salary without layoffs", said Tevdovski.

The Government proposal is acceptable for employers, but there should be no alignment.

"The salary increase is not a big burden for businesses, but there should be no alignment that would have a negative impact on the good workers. If a worker has a salary in the amount of MKD 12,000 and should now take the same salary with the one who previously had income of MKD 10,000 this would create alignment that reduces productivity of companies, which is something no one wants", said Angel Dimitrov, president of the Organization of Employers of Macedonia.

According to latest data from the Public Revenue Office, about 130,000 people have a monthly salary in the amount of MKD 12,000, which represents 20 percent from the total number of employed persons in the country.