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Reading: Only 15 Percent of Employers complied with tax-free Compensation for Workers
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Sarajevo Times > Blog > BUSINESS > Only 15 Percent of Employers complied with tax-free Compensation for Workers
BUSINESS

Only 15 Percent of Employers complied with tax-free Compensation for Workers

Published: February 3, 2026
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President of the Economic and Social Council for the territory of the Federation of Bosnia and Herzegovina, Safudin Čengić, stated that at today’s session of the Council in Sarajevo, it was established that some employers continue to pay workers the minimum wage and allowance in an “envelope”.

He expressed the hope that in the coming period, more efforts will be made to eliminate the gray economy and similar phenomena.

The President of the Federation of Independent Trade Unions of Bosnia and Herzegovina, Samir Kurtović, pointed out that in 2025, according to the data presented by the Federal Minister of Finance Toni Kraljević, only 15 percent of employers used the opportunity to pay tax-free compensation to workers.

“This is a minimal number and this year we expect significant changes to be made so that at least 50 to 60 percent of employers pay this compensation,” stated Kurtović.

He pointed out that the ESV adopted the conclusion that in the coming period the General Collective Agreement should be signed, and the Law on Minimum Wage adopted so that it would no longer be defined by decrees.

At today’s session, the Economic and Social Council, at the proposal of Kraljević, supported the Regulation on the payment of tax-free assistance to workers in 2026, which will be presented at the next session of the FBiH Government.

According to this regulation, employers in the Federation of BiH will be able to pay tax-free compensation to workers in the amount of up to 300 BAM per month for the months from January to June 2026, Fena news agency writes.

The average Net Salary in December was 1.296 BAM
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