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Sarajevo Times > Blog > BUSINESS > Significant Increase in Pensions in Federation BiH
BUSINESS

Significant Increase in Pensions in Federation BiH

Published December 12, 2025
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The Minister of Labor and Social Policy of the Federation of Bosnia and Herzegovina, Adnan Delić, stated today that pensions in the Federation of Bosnia and Herzegovina will be increased by about 17 percent in 2026, confirming that amendments to the Law on Pension and Disability Insurance (PIO) will be submitted for adoption by the FBiH Government next week, and then to the parliamentary procedure in early January.

At a press conference in Sarajevo, Delić said that intensive analyses and discussions have been conducted in recent months with the aim of securing funds to increase pensions.

As he stated, a meeting was held with representatives of the House of Representatives of the FBiH Parliament, at which it was agreed that the Government would adopt the final text of the amendments to the Law on PIO next week. According to the plan, both houses of the FBiH Parliament should adopt the law in January, but regardless of that date, the January pension will be paid in an increased amount.

The law, Delić explained, provides for two regular adjustments – in January and July. Preliminary estimates show that the January adjustment should amount to around 11.6 percent, while a growth of around 5.6 percent is expected in July. This would mean an increase in pensions by more than 17 percent in 2026.

“This would allow the FBiH Government to fully comply with all the demands of pensioners from the previous period. I am particularly happy that we have found financial resources, although this is not at all easy at the moment,” said Delić.

He pointed out that the FBiH Government will allocate a total of around 1.1 billion BAM for the pension system in 2026, while an additional around 500 million BAM is expected for the implementation of amendments to the Law on Pension and Disability Insurance alone.

The minimum pension in the FBiH, according to the proposed amendments, will increase from 599 to 700 BAM. Delić stressed that they are still aware that pensions are insufficient, but that the current increase is “more than realistic in relation to the budget’s capabilities”.

According to preliminary data, this year, around 3.273 billion BAM in contributions are expected to be collected, while the financial plan of the Pension and Disability Insurance Institute for 2026 is projected at around 4.42 billion BAM.

Delić emphasized that the increase will include all categories of pensions: minimum, guaranteed, proportional and highest.

“All pensioners will receive the same percentage increase. If we are talking about the lowest pension, an increase of around 17 percent means an increase of approximately 100 BAM,” the relevant minister stated.

He explained that the first pension for 2026 will be paid around February 5 and will include the January adjustment, while the second adjustment will follow on July 1.

He also thanked the Federal Pensioners’ Association “which fought intensively for the rights of pensioners”, emphasizing that expectations are high, but that “everyone has given their maximum to improve the rights and position of pensioners”.

“Finally, the most important thing is that we can share the good news: that we will fulfill the promise and ensure a significant increase in pensions in 2026. According to the old formula, the increase would be around six percent, and with this increase the increase is twice as large,” said Delić.

The amendments to the law, as confirmed, will be considered by the FBiH Government next week, and then sent to the House of Representatives and the House of Peoples in early January. This should complete the process in time for pensioners to receive the increased amounts as early as February.

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