Increase of Pensions in the Federation of BiH

Based on the decisions on regular harmonization, pensions in the Federation of Bosnia and Herzegovina will be increased by 11 percent. According to the decision of the Board of Directors of the Pension and Disability Insurance Institute, regular adjustment of pensions this year amounts to 7.3 percent, and today’s decision of the FBiH Government on extraordinary adjustment of pensions increases by 3.50 percent, except for the highest pensions realized by law.

The FBiH Government announced that the Decision on Extraordinary Adjustment of Pensions will be applied from the payment of pensions for June 2022.

The explanation of the decision states that the provision of Article 80 of the Law on Pension and Disability Insurance stipulates that the Federation Government may decide to perform extraordinary adjustment of pensions, which can be done once a year if the growth rate of real gross domestic product in the previous year exceeds three percent if there is no accumulated budget deficit of the Federation, up to the growth rate of real gross domestic product in the previous year.

This possibility does not include the highest pension until the lowest amount of the pension reaches 1/5 (one fifth) of the amount of the highest pension realized according to the law.

The Federal Ministry of Labor and Social Policy received an act from the Federal Institute for Pension and Disability Insurance on April 20, 2022. year, which provided information that the conditions for extraordinary adjustment of pensions in the percentage of 3.5 percent have been met.

The total amount of funds required for the payment of pensions in 2022, including regular and extraordinary adjustment of pensions is provided in the FBiH budget for this year.