In recent days, the news echoed that pensions in the Federation of Bosnia and Herzegovina (FBiH) have been increased by 4.49 percent. This is a regular adjustment of pensions, which still will not solve the numerous financial problems of pensioners. The method of calculating the percentage of pension adjustment in relation to the rise in costs is also a problem. How pensioners cope with daily price increases, especially since most of them have small pensions, was investigated by Armin Redzic.
Pensions in FBiH have been increased by 4.49%, which means that the lowest pension will amount to 599.28 BAM, the guaranteed one to 715.21 BAM, and the highest pension to 2996.40 BAM.
“This applies from January 1st, 2025. So, the pensions that will be paid in the 5th month are the pensions for the 4th month, and they will be increased by 4.49%. Our beneficiaries will receive in the 5th month the differences for the first three months between what was paid to them and these increased pensions,” said Tomislav Kvesic, public relations associate of the Federal Pension and Disability Insurance Institute.
The adjustment percentage is calculated according to the legal formula: 50% of the growth rate of nominal GDP and 50% of the growth rate of the consumer price index give the adjustment percentage. However, pensioners are not satisfied with this method of calculation, and experts do not see it as an ideal model either.
“We requested that the calculation be 70% the growth of average personal income, and 30% the consumer basket,” stated Mustafa Trakic, president of the Association of Pensioners’ Associations ofthe Zenica-Doboj Canton (ZDC).
“For those pensioners who have enormously high pensions, it increases pensions equally, which is completely absurd. Someone who had 2800 now approaches a pension of 3000, which is for BiH conditions incredibly high, and on the other hand, someone who has the minimum pension gets a very symbolic increase with which it is difficult to make even one shopping trip to the supermarket given the price levels,” explained Igor Gavran, an economist.
Such an increase will, for the most part, not mean much to pensioners. The good news is that, if the Government of the FBiH makes such a decision, there could also be an extraordinary adjustment of pensions.
“There are some announcements from the Government of FBiH about improving the conditions for retirees. That work will be done on that, that’s for sure…” says Tomislav Kvesic.
For pensioners, aside from high bills and the situation of often choosing between buying food and buying medicine, hope remains that they will not wait too long for concrete moves from those responsible.
