The House of Peoples of the Parliament of the Federation of BiH accepted the Law on Amendments to the Law on MIE/PIE, previously adopted in the House of Representatives, and after publication in the Official Gazette of the Federation of BiH (number 6/26), the Management Board of the Federal Institute of MIE/PIE made a decision on the advance adjustment of pensions in the amount of 11.2 percent.
The decision on advance adjustment was made because at the time of its adoption, the official growth parameters of the average gross salary and the consumer price index, which are published by the Federal Bureau of Statistics, were not yet known. After the publication of the mentioned indicators, the Board of Directors will make a final decision on the adjustment of pensions, which will be applied from January 1, 2026.
After obtaining the consent of the Government of the Federation of Bosnia and Herzegovina to the aforementioned decision of the Board of Directors, the professional services of the MIO/PIO Institute performed the necessary tests and successfully processed the pensions, which created the legal and technical prerequisites for the payment of pensions increased by 11.2 percent for January 2026, which will be realized on February 5, 2026. Funds for the payment are provided by the Budget of the Federation of Bosnia and Herzegovina, announced the Federal Institute for PIO/MIO.
In accordance with the adopted decision, the lowest pension of beneficiaries who became eligible before January 1, 2026 increases from 599.28 BAM to 666.40 BAM, the guaranteed pension increases from 715.21 BAM to 795.31 BAM, while the highest pension increases from 2,996.40 BAM to 3,332.00 BAM.
The average independent pension from December 2024, adjusted for all associated increases, amounts to 841.98 BAM, which also represents the amount of the guaranteed pension in accordance with the Law on Amendments to the Law on MIO.
According to Article 81 of the aforementioned Law, the lowest old-age pension is classified into six categories, depending on the length of the pension period, and is based on the amount of the adjusted average pension from December 2025 in the amount of 651.05 BAM, which after adjustment amounts to 723.97 BAM.
Accordingly, for beneficiaries with up to 20 years of pensionable service, the pension cannot be lower than 60 percent of the average, or 434.38 BAM, for beneficiaries with 20 to less than 25 years of pensionable service, the pension cannot be lower than 65 percent of the average, or 470.58 BAM, and for beneficiaries with 25 to less than 30 years of pensionable service, the pension cannot be lower than 70 percent of the average, or 506.78 BAM.
For beneficiaries with 30 to less than 35 years of pensionable service, the pension cannot be lower than 75 percent of the average, or 542.98 BAM, for beneficiaries with 35 to less than 40 years of pensionable service, the pension cannot be lower than 85 percent of the average, or 615.37 BAM and
for beneficiaries with 40 or more years of pensionable service, the pension cannot be lower than 95 percent of the average, or 687.77 BAM.
The law further stipulates that beneficiaries of family and disability pensions, for whom the amount of the lowest pension is determined, cannot receive a pension lower than 90 percent of the average pension, ie 651.57 BAM.
It is important to emphasize that the stated amounts represent only the lowest amount, and not the only pension amount, because the pension is calculated based on the length of service and salary and can amount to significantly more in each of the above categories, notes the Institute.
The lowest pension of beneficiaries who exercise their rights according to special regulations (the Act on early preferential retirement of defenders of the war of defense and liberation, the Act on the special rights of winners of war awards and decorations and their family members and the Act on the rights of veterans and their family members), was determined by amendments to the aforementioned laws in the amount of the lowest pension so far and amounts to 666.40 BAM.
A total of 465,697 beneficiaries will receive a pension for January, and the required funds amount to about 351,100,000 BAM.
Voluntary insurance in 2026 amounts to 418.88 BAM per month, the Institute stated.
