The minimum wage in the Federation of Bosnia and Herzegovina (FBiH) will no longer be 619 BAM but will increase to 1.000 BAM. This was established by a regulation adopted by the FBiH government on Tuesday, December 30th. For the first time in two years, a session of the Economic and Social Council was also held. Employers are dissatisfied with the decision, while the labor union welcomes it. What does this specifically mean for workers?
Workers in FBiH will have a guaranteed minimum wage of 1.000 BAM in 2025, instead of the previous 619 BAM. This decision was made during a session of the Federal government and was formalized through a regulation, meaning it takes effect immediately upon adoption.
“The decision stipulates that the minimum wage for the period from January 1st to December 31st, 2025, is set at a net amount of 1.000 BAM. This decision takes effect immediately upon adoption and will be published in the Official Gazette of FBiH. The minimum wage for 2025 was determined in accordance with Article 6, Paragraph (3) of the Regulation, at an amount higher than what would have resulted from adjustments,” stated the FBiH government.
The government’s session was preceded by a meeting of the Economic and Social Council, the first such meeting in two years. Social partners at this meeting failed to reach an agreement on the minimum wage, nor on the electricity price increase for businesses, which exceeds 20%. Employers believe that the government’s decision regarding the minimum wage will lead to a collapse in the economy. Their proposal was for total earnings per worker to amount to 1.000 BAM.
“I can conclude that today’s session was not productive. Unfortunately, instead of finding ways for social partners to agree on every issue and gain everyone’s support, we have ended up in a situation where decisions are being made unilaterally, and their implementation is questionable,” said Safudin Cengic, president of the Economic and Social Council, on Tuesday.
“Employers were against this, fully aware that these are high standards that cannot be met under current conditions. We formally stated this during the session. Our explanation was that this decision would very likely lead to a serious collapse, not just pose a risk,” said Mario Nenadic, president of the FBiH Employers’ Association.
The Confederation of Independent Trade Unions of BiH welcomes the FBiH government’s decision. They believe the government will find solutions for employers who see the wage increase as a burden on their operations.
“It is very important to emphasize that this wage does not include allowances such as meal allowance, holiday bonuses, transportation costs, or any other benefits previously paid by employers. Additionally, it is crucial to note that the government will act responsibly in the coming period to find solutions for employers who may find this decision burdensome,” said Selvedin Satorovic, president of the Confederation of Independent Trade Unions of BiH.
According to the decision, the FBiH government is expected to co-finance the difference in contributions for micro, small, and medium-sized enterprises.
