Prime Minister of the Federation of Bosnia and Herzegovina (FBiH), Fadil Novalic, Federal Minister of Labor and Social Policy Vesko Drljaca and Director of the Pension and Disability Insurance Institute (PIO) FBiH Zijad Krnjic held a meeting with the leadership of the Federation of Associations of Pensioners in FBiH led by Rezo Mehic and the Federation of Cantonal Associations of Pensioners in FBiH led by Ivo Kozul.
They discussed the current financial situation of pensioners and the possibilities for increasing pensions.
Representatives of the Government of the FBiH expressed their determination to enable advance adjustment of pensions by 11.1 percent from January 1st, 2023, provided that the budget of the FBiH for the following year is adopted. This would mean that pensioners could receive an increase of 11.1 percent with the regular payment of their January pensions, if the FBiH Parliament adopts the FBiH budget.
As it was explained at yesterday’s meeting, considering the unofficial indicators of GDP growth and the consumer price index this year, it is estimated that this amount will be more significant on April 15th, 2023, but we have to wait for the official data that the Institute publishes in April.
However, so that pensioners do not have to wait until then, and taking into account the consequences of global inflation and the financial situation of this category of the population, the Government’s decision is to allow an advance increase of 11.1 percent from the beginning of January, and if that percentage is even higher in April, it will be paid retroactively.
Prime Minister Novalic announced that this week’s Government session will include the adoption of the FBiH Budget Proposal for the next year.
To recall, in April and June of this year, based on the Government’s decisions on regular and extraordinary adjustment, pensions were increased by a total of 11 percent, and from the payment of November pensions to the recipients of the lowest pensions, the third increase of this year by another five percent began.
With the decree on assistance to the population due to the increase in the consumer price index, the Government of the Federation ensured the payment of one-time benefits of 100 BAM to pensioners from the federal budget in 2022 in August, and the subsidization of electricity bills, according to the Decision of the FBiH Government, also includes mostly pensioners.