Economists and employers warn: BiH has one of the worst worker-pensioner ratios in Europe, and the situation is getting worse.
In just ten years, the number of pensioners in Bosnia and Herzegovina has increased by more than 100,000. According to the BiH Agency for Statistics, in 2014 there were 640,560 pension beneficiaries in the country.
In December 2024, according to information from entity funds, that number was around 742,000.
Adnan Smailbegović, president of the Federation of Bosnia and Herzegovina Employers, warns of a serious problem: the ratio of workers to pensioners is extremely unfavorable – 1.15 workers work for one pensioner.
“Only in Romania is the ratio worse, 1.09 workers per pensioner. The European average is 1.7, and some countries have more than three workers per pensioner. FBiH is between 200,000 and 220,000 workers short of reaching the EU average,” says Smailbegović.
He points out that a worrying trend is currently taking place in FBiH: for every new employee, there are two new pensioners. The demographic picture further complicates the situation.
Pensioners with benefits are putting an additional burden on the system
Economists emphasize that the growth in the number of pensioners is not keeping up with the growth in employment and economic activity. A particular problem is privileged pensions, often awarded without proportional contributions.
“Many jobs in the public sector are rewarded with enormously high pensions. This is an unfair burden on the system imposed by political will. ‘Ordinary’ pensioners, who have regularly paid their contributions, must not be punished,” warns economic analyst Igor Gavran.
He adds that the problem is being exacerbated by excessive borrowing, budget deficits and unintended spending.
The number of pensioners and costs continue to grow in 2025.
According to the Federal Pension and Disability Insurance Institute, 453,900 beneficiaries received their pensions for December 2024, at a total cost of 298 million BAM. For July 2025, 459,570 beneficiaries are planned and an allocation of around 384 million BAM is planned, including a one-time cash bonus of 71.6 million BAM.
In Republika Srpska, 288,448 pensions were paid in December 2024. By July 2025, the number had increased to 291,416 beneficiaries, of which 233,846 live in RS and 57,570 outside the entity.
Alarm for the authorities and society
Smailbegović says that without a systemic approach – from creating jobs to stopping the exodus of the working-age population – the situation may become unsustainable. Gavran adds that the only long-term solution is a fairer system, in which pensions will be sufficient for a dignified life, without raising the retirement age or reducing the rights of current pensioners, writes Nezavisne.
