The Ministry of Civil Affairs of Bosnia and Herzegovina (MCP BiH) finalized the negotiations on the social security agreement between Bosnia and Herzegovina and Australia, as well as the administrative agreement for its implementation, which solves one of the key existential issues for a large number of people who spent part of their working life in Bosnia and Herzegovina and Australia.
The Ministry, in cooperation with the competent institutions for social insurance in Bosnia and Herzegovina, has been working on the harmonization of the document for more than 10 years, and the key innovation that this agreement brings is the possibility of adding up the pension experience achieved in Bosnia and Herzegovina with the periods of residence during the working life completed in Australia, for the purpose of exercising the right to a pension. This makes it possible to exercise rights even in situations where the insured does not independently meet the requirements for a pension in either of the two systems.
– This is the first contract on social security that Bosnia and Herzegovina concludes with an overseas country. By signing it, we are creating a fairer system for all those who worked and contributed in different countries. This contract recognizes the entire work and life path of people, regardless of whether they spent their years in Sarajevo, Banja Luka, Sydney or Melbourne – said the Minister of Civil Affairs of Bosnia and Herzegovina, Dubravka Bošnjak.
In practice, the contract will enable the pension service completed in Bosnia and Herzegovina to be added to the periods of residence in Australia, in order to realize the right to benefits, i.e. pension, in cases where there is not enough service for an independent pension from the Bosnia and Herzegovina pension systems or sufficient periods of residence for an independent Australian social pension. Each country, in accordance with its regulations, will pay a part of the pension that corresponds to the periods of insurance or residence completed in its social insurance system.
The contract will also enable pensions earned in one country to be paid out to beneficiaries residing in another country. In addition, the administrative agreement for the implementation of the contract agreed direct data between the competent institutions in Bosnia and Herzegovina and Australia, which simplifies the procedures and significantly shortens the time for deciding on submitted requests.
– It is important to emphasize that the contract applies to all persons who were or are covered by pension insurance in Bosnia and Herzegovina and the Australian social security system, regardless of citizenship. In addition to pension rights, the contract also regulates issues of disability insurance, and prevents double payment of contributions for persons who are temporarily sent to work in one of these two countries.
After successfully completed negotiations and obtaining all positive expert opinions, the Ministry of Civil Affairs of Bosnia and Herzegovina forwarded the documentation to the Council of Ministers of Bosnia and Herzegovina, and then to the Presidency of Bosnia and Herzegovina. After the approval and completion of the ratification process, the contract will enter into force and allow the submission of applications under the new, simplified rules. The signing of the Agreement on Social Security with Australia is expected in the first half of 2026, the MCP of Bosnia and Herzegovina announced.
