Minimum Wage Hike Fails to Trigger Job Cuts, Employee Numbers Hold Steady

The President of the Economic and Social Council for the territory of the Federation of BiH, Safudin Čengić, stated today that, according to data from relevant institutions, there has been no reduction in the number of employees in the FBiH in the three months following the increase in the minimum wage.

In a statement to the media after the ESV session, Čengić said that a large number of business entities have taken advantage of the Regulation that enabled the refund of part of the contributions paid in the difference between the previous and new minimum wage amounts (619 BAM and 1,000 BAM).

As he pointed out, the FBiH Government has found a way to nullify the negative impact of the increase in contributions.

He added that it has been agreed to continue activities to reduce contributions so that by January 1, 2026 they will be at the level of neighboring countries, which also requires the adoption of the Law on Fiscalization to improve discipline in paying taxes and contributions.

Čengić stated that the Government has been requested to consider the initiative of the Employers’ Association to amend the Law on Trade in the FBiH, which would allow a certain number of business entities to work on Sundays and holidays.

He pointed out that the Employers’ Association has also launched an initiative to amend the Regulation on the Amount of Daily Allowances and Business Travel Expenses, which has not been amended for 12 years, in order to increase the amount of the daily allowance from the current 25 BAM to around 50 BAM.

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