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Sarajevo Times > Blog > POLITICS > Outraged and disappointed: What does a Five Percent Increase in Pensions mean?
POLITICS

Outraged and disappointed: What does a Five Percent Increase in Pensions mean?

Published: January 31, 2024
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Pensioners in the Federation of Bosnia and Herzegovina will have their pensions increased by 5 percent. This is an advance increase for 2024, which, by the way, happens on an annual basis, in accordance with the data related to the growth of GDP and the consumer price index in the previous year. When the increase in pensions is mentioned, it sounds like positive and encouraging news, but when you scratch the surface, 5 percent means only about 30 marks of increase. Thus, the lowest pension in February, instead of 538 convertible marks, will amount to 564.

Pensioners’ associations believe that political leaders have remained silent on their appeals for more adequate social protection measures. Politicians, they say, refer to laws whose changes are easy to pass if there is a will.

“We urgently need changes to the law on PIO, which will enable an extraordinary adjustment of pensions with the growth of inflation, with economic disruption”, says Haso Halilović, president of the Union of Pensioners of Tuzla Canton.

The authorities have previously announced an extraordinary adjustment, but pensioners, taught by past experiences, do not believe until it happens. The election year could prevail in their favor, according to analysts.

“We don’t know if it will happen yet, there are no announcements, but it’s an election year, we wouldn’t be surprised if it happens. This can be expected, it is a matter of political will and income, as they will be realized based on the budget”, explains economic analyst Admir Čavalić.

Despite their age and often poor health, pensioners in Tuzla demanded their rights on the streets. And they will do it again, they announce. Demands related to 52 percent of the average salary, safer health care, but also the overall better position of pensioners in society are under question – and none of the authorities have answered them.

“We have a tyrannical attitude of the government towards all vulnerable categories, workers, social cases, and we have to fight to solve it. If the government leads street politics, then solutions should be sought on the street,” says Vehid Jahić, president of the Tuzla Pensioners’ Party.

They hope that political leaders will tackle the challenges of social justice and provide concrete solutions that will ensure a dignified and safe life for those who have dedicated their working lives to building society. It is not too late for politicians to show determination in solving the problem and restore the trust of the citizens, which they are losing day by day, Federalna writes.

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