Employers in the Federation of Bosnia and Herzegovina will continue to be able to pay tax-free compensation to employees in the amount of up to 300 BAM per month, from January to June 2026.
The Economic and Social Council for the Territory of the Federation of Bosnia and Herzegovina, at the proposal of the Deputy Prime Minister of the Federation of Bosnia and Herzegovina and the Federal Minister of Finance, Toni Kraljević, today supported the Regulation on the Payment of Tax-Free Assistance to Employees in 2026, which will be presented at the next session of the Government of the Federation of BiH.
The aforementioned Regulation is part of a series of measures that the Government of the Federation of Bosnia and Herzegovina has been taking for a long time with the aim of improving the living standards of workers.
“The aim of the aforementioned measure, which was created as a product of continuous dialogue with trade unions and employer representatives, is to provide additional financial support to employees, since its implementation opens up space for income growth,” Deputy Prime Minister Kraljević told Fena.
He added that according to this regulation, an employer cannot apply the provisions of the Regulation in such a way as to reduce the employee’s salary calculated and paid for the month of November 2025. Payment of assistance to employees can be made monthly for the month to which the assistance relates (only after the end of that month) in the period from the first day of the following calendar month, and no later than the last day of the following calendar month.
The employer is obliged, by the 7th of the month for the previous month in which the assistance was paid, to submit to the competent Tax Office a Report on the payment of assistance. Upon receipt of the said Report, the Tax Administration will control the fulfillment of the conditions for the payment of assistance prescribed by this Regulation.
Incidentally, the re-enactment of the Regulation on the payment of non-taxable assistance to employees with a reduction in the aggregate contribution rate, after almost two decades, through amendments to the Law on Contributions of the FBiH, shows the commitment of the FBiH Government to reforms in the field of labor that lead to the creation of a more favorable business environment and the creation of new jobs.
