The minimum wage of 1,000 marks, which has caused a great deal of public outcry and protests by employers in the Federation of Bosnia and Herzegovina, means nothing due to the daily price increases of basic necessities. Fuel and electricity have become more expensive since the new year, and higher prices for bread and bakery products, as well as other goods and services, have also been announced. BHRT asked citizens in our country how they are living in a time of high inflation and a wave of daily price increases.
The dizzying price increases for basic necessities, as well as other goods and services, are being felt by citizens, given the already low standard of living in our country. The daily price increases affect the majority of citizens in Bosnia and Herzegovina, especially those with lower incomes and pensioners, who say they live below all human dignity.
The consumer basket in Bosnia and Herzegovina has long exceeded three thousand marks per month. Citizens believe that the price increases have long since gotten out of control. No one believes in the protection of citizens’ living standards anymore, and the long-lost trust in institutions is coming to the fore.
The Association for the Protection of Water Users has repeatedly warned government institutions that they must protect citizens. In addition to salary increases, one of the protection measures is greater control of inspection services and punishments for law breakers and unjustified increase in the prices of goods, as this directly threatens the standard of living of citizens and the stability of the market.
At the session of the Economic and Social Council, which was held on Wednesday in the building of the FBiH Government, several conclusions were reached regarding the minimum wage, which, as they stated, will lead to the satisfaction of both workers and employers.
“The conclusion of the meeting is that the members of the ESV support the activities of the FBiH Government to improve workers’ standards and reduce contributions on salaries over 1,000 BAM. This means that we have concluded that the minimum wage is 1,000 BAM, contributions up to 1,000, or between the previous 619 and the current 1,000 BAM, the minimum wage should be defined in the manner of refunding part of the contributions up to a maximum of 304 BAM by a specific legal act that will be ready in the next seven days,” said the President of the ESV, Safudin Čengić.
The increase in the minimum wage will cause an increase in other wages, and that the increase in wages up to 450 BAM will be exempt from paying contributions. This will allow employers to increase the wages of workers who already have over 1,000 BAM, and the government will exempt them from paying contributions with its new regulation.
“It is necessary to prepare fiscal laws, no later than September 30, 2025, so that they can be adopted and implemented from January 1, 2026,” Čengić said.
In order for this to be achieved, it is necessary for both houses of the federal parliament to adopt the budget for this year.
After the ESV session, the Prime Minister of the Federation of Bosnia and Herzegovina, Nermin Nikšić, also addressed the press, reminding them where the funds that will be paid by increasing contributions will be spent.
“So, I want to confirm and reiterate here once again that not a single convertible mark goes to the Federation budget for any form of public spending. That is 256 million that come with a name and surname, and these are the funds of the Pension Insurance Fund and can only be used to pay pensions and possibly improve the standards of pensioners. 183 million are funds belonging to health insurance, of that 183 million, 10.2% goes to the Federation solidarity fund, everything else remains with the cantons and some 76 million remain in income tax, which is the original income of the cantons and municipalities.” he said.
Nikšić also said that certain employers will have the right to a refund, and explained in which cases employers will be exempt from taxes in the event of a salary increase.
“When we talk about other measures of the Government and the Federation of BiH, we will provide incentives and support with the latest regulation, that is, we cannot say that these are incentives, but we will exempt employers from paying additional contributions for some salary grades. Those who show in their November and January payrolls that they have increased the salaries of these workers who had 1,000 marks and more, up to the amount of 450 marks, will be exempt from paying additional contributions. Of course, this does not mean that everyone will receive 450 marks, that employers, depending on the complexity of the workplace and the job, will have space and opportunities. So, someone who had a salary of 1,100 marks, and now it increases to 1,400 or 1,500, employers will be exempt from contributions for that difference,” concluded Prime Minister Nikšić, Federalna writes.
