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Sarajevo Times > Blog > BUSINESS > Federation Government Adopts One-Time Payment for Pensioners
BUSINESS

Federation Government Adopts One-Time Payment for Pensioners

Published: July 23, 2025
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The Government of the Federation of Bosnia and Herzegovina adopted at today’s telephone session, at the proposal of the Federal Ministry of Labor and Social Policy, the Regulation on a One-Time Pension Supplement as Support for Pensioners of the Federal Pension and Disability Insurance Institute.

This regulation regulates the payment of a one-time pension supplement to pension beneficiaries of the Federal Pension and Disability Insurance Institute who reside in the territory of Bosnia and Herzegovina, the objective of the regulation, the categories of beneficiaries of the pension supplement, the amount of the pension supplement, exemptions from payment, and the timeframe for the payment of the pension supplement, the Public Relations Office of the Government of the Federation of Bosnia and Herzegovina announced.

As they stated, the objective of the one-time pension supplement is to improve the financial position of pension beneficiaries who exercise their rights with the insurance provider of the Federation of Bosnia and Herzegovina, and the total funds for the implementation of this regulation will be provided from the Budget of the Federation of Bosnia and Herzegovina for 2025.

A one-time cash bonus will be paid to pensioners who are caught in the payment of their pension on the date the Regulation enters into force.

The right to the highest amount of a one-time bonus of 250 BAM is granted to all pension beneficiaries who are entitled to the lowest pension in the Federation of BiH, which currently amounts to 599.28 BAM, as well as beneficiaries who are paid the difference to the amount of the lowest pension in accordance with Article 82 of the Law on Pension and Disability Insurance.

The Federal Ministry of Labor and Social Policy explains that this category also includes pensioners who have a proportional pension with another BiH entity, and whose pension in total is less than the amount of the lowest pension in the Federation of BiH. These are, among others, most often returnees who have completed their service in both BiH entities.

The Ministry states that in this way, the Government of the Federation of BiH clearly confirms its commitment to prioritize assistance towards the most vulnerable categories of pensioners.

The regulation stipulates that the amount of 200 BAM of the one-time cash supplement is intended for beneficiaries whose pension is from 599.29 BAM to 800 BAM, 150 BAM for beneficiaries whose pension is from 800.01 BAM to 1,000 BAM, and 100 BAM for beneficiaries whose pension is from 1,000.01 BAM to 1,500 BAM.

The one-time cash supplement to the pension is considered a pension income within the meaning of Article 125, paragraph (1) of the Law on Pension and Disability Insurance and is an integral part of the pension for July 2025. The Ministry explains that accordingly, the supplement will be paid in August to 353,448 pensioners.

This extraordinary measure, as explained by the Ministry, aims to mitigate the negative effects of inflation and strengthen the social security of pensioners, with a special focus on the most vulnerable categories. They add that with these measures, the Government of the Federation of BiH confirms that it remains consistent in protecting the most vulnerable categories of the population, but at the same time emphasizes that the pressures on the pension system cannot be resolved in the long term with one-off interventions.

Taking into account all relevant indicators, it is emphasized that systemic changes are the only way to a sustainable pension system. Therefore, in parallel with the emergency measures, active work will be carried out on amendments to the Law on Pension and Disability Insurance, through which systemic stability and fairness will be further regulated, both for current and future pensioners.

The Ministry states that demographic recovery, the fight against the shadow economy, changes to the set of fiscal laws and strengthening the labor market represent related challenges to which the Government of the Federation of BiH responds in a coordinated, thoughtful and responsible manner.

This one-off cash supplement is, as the Ministry states, an expression of concrete concern and sensitivity towards pensioners today, but also a hint that solutions are being worked on that will ensure dignified old age for all future generations.

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