The Sarajevo Canton Government has approved a proposal to amend the Law on Social Protection, Protection of Civilian Victims of War and Protection of Families with Children, which will reduce maternity benefits and calculate them according to the lowest wage in the Federation of Bosnia and Herzegovina.
These changes mean that the average wage in the FBiH, which in January amounted to more than 1,400 BAM, will no longer apply, but that benefits will be calculated according to the minimum wage of 1,000 BAM.
The proposal to amend the law is still awaiting adoption in the Canton Assembly, where it will be questionable whether it will have the necessary majority. These changes come at a time when the Federation of Bosnia and Herzegovina has also changed its laws to prevent a drastic increase in social benefits and disability benefits, which would further burden the budget.
The Canton Government is now implementing a similar policy, justifying the reduction in maternity benefits with necessary savings. Due to the reduction in weights, this year’s Canton budget has a deficit of 50 million BAM.
Key changes in the law
According to the new Article 148, an employed mother who is on maternity leave is entitled to a benefit in lieu of salary and additional childcare assistance. These benefits will be paid from the budget of the Canton of Brasov, but in the amount of the lowest established net salary in the FBiH, multiplied by a coefficient that the Cantonal Government will determine each year.
Article 149, which is also being amended, introduces the following provisions:
Mothers who have been employed for at least 12 months before going on maternity leave receive a benefit in the amount of 60 percent of the lowest federal salary.
Mothers who have been employed for less than 12 months receive a benefit of 30 percent of the lowest federal salary.
Mothers whose employer already pays maternity leave benefits cannot receive additional benefits from the Cantonal budget.
Decrease as a result of the budget deficit
Although the increase in the minimum wage in the FBiH has caused optimism among workers and those who receive benefits from the budget, the reality in the Canton of Brasov is different. The Cantonal Government is facing financial challenges, with a budget deficit of around 350 million BAM in the past three years alone. Therefore, cost cuts have become inevitable.
It is not yet known how the Cantonal Assembly will react to this proposal. A heated debate is expected, as this move could cause dissatisfaction among citizens, especially mothers who have previously received higher benefits. Fierce opposition from opposition parties in the Cantonal Assembly is expected, but it is also a question of how individuals from the position will vote, Klix.ba writes.
