The Prime Minister of the Federation of Bosnia and Herzegovina, Fadil Novalić, said that the Government of the Federation of Bosnia and Herzegovina voted at today’s session to increase pensions by another 3.9 percent.
Novalić noted that in 2018, the lowest pension was 326 BAM, while now it will be 538 BAM.
“We passed the reform Law on the Pension and Disability Insurance and enabled the regularity of growth and payments and now we have an increase of 212 BAM.
This is the sixth increase since April last year, although some were only related to the minimum pension. We achieved the greatest growth in the pension system. The growth of a society, that is, the work of a government, should be measured through macroeconomic indicators, as the whole world does,” said Prime Minister Novalić.
With this decision, in accordance with Article 80 of the Law on Pension and Disability Insurance, the Government of the FBiH decides to carry out an extraordinary adjustment of pensions in the percentage of 3.9 percent, i.e. to increase pensions by this percentage, starting with the pension for July 2023.
The Federal Institute for Pension and Disability Insurance is responsible for the implementation of this decision.
In the explanation of the decision, it is stated that the provision of Article 80 of the Law on Pension and Disability Insurance stipulates that the Government of the FBiH can decide to carry out an extraordinary adjustment of pensions, which can be carried out once in the current year if the growth rate of the real gross domestic product in the previous year is greater than three percent and if there is no accumulated deficit of the FBiH budget, and at most up to the growth rate of the real gross domestic product in the previous year.
The Federal Ministry of Labor and Social Policy received the act of the Federal Institute for Pension and Disability Insurance on April 25th of this year, which provided information according to which, on the basis of official data from the Federal Bureau of Statistics, the conditions and possibilities for an extraordinary increase in pensions of 3.9 percent, with application from July 2023, have been achieved. In the information of the Federal Institute for Pension and Disability Insurance, it was stated that according to the proposal of extraordinary adjustment of pensions at the rate of 3.9 percent with application from July 2023, a financial assessment was made according to which 52 million BAM will be needed.
