ESC to meet tomorrow: FBiH Government delays decree on tax-exempt employee aid - KM 250 per month

(Patria) - The Economic and Social Council for the territory of the Federation of BiH will hold a session on Tuesday, which will also consider a new decree on the payment of tax-exempt aid by employers to employees in the monthly amount of up to KM 250.

At the session of the House of Representatives of the FBiH Parliament, Prime Minister Nermin Nikšić announced the adoption of this decree, but one month has already passed and employers could not pay tax-exempt aid with January salaries.

The Employers' Association confirmed to Patria that they do not have a written proposal for the decree.

In addition to representatives of trade unions and employers, the Economic and Social Council includes the Federal Prime Minister and six ministers from the FBiH Government (finance, labor and social policy, development, entrepreneurship and crafts, energy, mining and industry, health, agriculture, water management and forestry).

The FBiH Government will not have other decrees for employer aid this year, except for this relief in the form of paying tax-exempt aid to employees in order to increase employee income without additional burdens.

The FBiH Government is expected to further reduce payroll contributions this year, but given the increase in pensions and the insufficient number of employed persons compared to the growing number of pensioners, it is possible that this will not happen in order not to destabilize the Pension and Disability Insurance Fund, which is mostly funded by contributions from employees' salaries.

The drop in the number of employed persons in 2025 is over 6,000, while the number of pensioners has increased by 11,000 new beneficiaries.

Even if the ESC adopts this decree tomorrow, it still needs to go to the FBiH Government to take effect. The decree is not binding but represents a relief for employers who wish to pay aid without additional costs.

Every payment is recorded by the FBiH Tax Administration because employers are obliged to submit a report on the payment.