At today’s session of the Economic and Social Council, which was held in the building of the FBiH Government, several conclusions were reached regarding the minimum wage, which, as they stated, will lead to the satisfaction of both workers and employers.
“The conclusion of the meeting is that the members of the ESV support the activities of the FBiH Government to improve workers’ standards and reduce contributions on salaries over 1,000 BAM. This means that we have concluded that the minimum wage is 1,000 BAM, contributions up to 1,000, or between the previous 619 and the current 1,000 BAM, the minimum wage should be defined in the manner of refunding part of the contributions up to a maximum of 304 BAM by a specific legal act that will be ready in the next seven days,” said the President of the ESV, Safudin Čengić.
The increase in the minimum wage will cause an increase in other wages, and that the increase in wages up to 450 BAM will be exempt from paying contributions. This will allow employers to increase the wages of workers who already have over 1,000 BAM, and the government will exempt them from paying contributions with its new regulation.
“It is necessary to prepare fiscal laws, no later than September 30, 2025, so that they can be adopted and implemented from January 1, 2026,” Čengić said.
In order for this to be achieved, it is necessary for both houses of the federal parliament to adopt the budget for this year.
After the ESV session, the Prime Minister of the Federation of Bosnia and Herzegovina, Nermin Nikšić, also addressed the press, reminding them where the funds that will be paid by increasing contributions will be spent.
“So, I want to confirm and reiterate here once again that not a single convertible mark goes to the Federation budget for any form of public spending. That is 256 million that come with a name and surname, and these are the funds of the Pension Insurance Fund and can only be used to pay pensions and possibly improve the standards of pensioners. 183 million are funds belonging to health insurance, of that 183 million, 10.2% goes to the Federation solidarity fund, everything else remains with the cantons and some 76 million remain in income tax, which is the original income of the cantons and municipalities.” he said.
Nikšić also said that certain employers will have the right to a refund, and explained in which cases employers will be exempt from taxes in the event of a salary increase.
“When we talk about other measures of the Government and the Federation of BiH, we will provide incentives and support with the latest regulation, that is, we cannot say that these are incentives, but we will exempt employers from paying additional contributions for some salary grades. Those who show in their November and January payrolls that they have increased the salaries of these workers who had 1,000 marks and more, up to the amount of 450 marks, will be exempt from paying additional contributions. Of course, this does not mean that everyone will receive 450 marks, that employers, depending on the complexity of the workplace and the job, will have space and opportunities. So, someone who had a salary of 1,100 marks, and now it increases to 1,400 or 1,500, employers will be exempt from contributions for that difference,” concluded Prime Minister Nikšić, Federalna writes.
