Payment of adjusted pensions for January begins on February 5, here are the increases

(Patria) - After the House of Peoples of the Parliament of the Federation of BiH accepted the Law on Amendments to the Law on Pension and Disability Insurance (PIO/MIO) on January 23, 2026, previously adopted by the House of Representatives, and after its publication in the Official Gazette of the Federation of BiH (No. 6/26), the Management Board of the Federal PIO/MIO Institute adopted a decision on an advance adjustment of pensions in the amount of 11.2%.

The decision on advance adjustment was made because, at the time of its adoption, the official parameters for the growth of the average gross salary and the consumer price index, published by the Federal Bureau of Statistics, were not yet known. After the publication of these indicators, the Management Board will make a final decision on the adjustment of pensions, which will apply from January 1, 2026.

After obtaining the consent of the Government of the Federation of BiH for the aforementioned decision of the Management Board, the expert services of the PIO/MIO Institute performed the necessary tests and successfully completed the pension processing, thus fulfilling the legal and technical prerequisites for the payment of pensions increased by 11.2% for January 2026, which will be realized on February 5, 2026. Funds for payment have been secured by the Budget of the Federation of BiH.

In accordance with the adopted decision:

• the lowest pension for beneficiaries who acquired the right before January 1, 2026, increases from 599.28 KM to 666.40 KM
• the guaranteed pension increases from 715.21 KM to 795.31 KM
• the highest pension increases from 2,996.40 KM to 3,332.00 KM.

The average independent pension from December 2024, adjusted for all applicable increases, amounts to 841.98 KM, which also represents the amount of the guaranteed pension in accordance with the Law on Amendments to the Law on PIO ("Official Gazette of FBiH", No. 6/26).

According to Article 81 of the aforementioned Law, the lowest old-age pension is classified into six categories, depending on the length of pension service, and is based on the amount of the adjusted average pension from December 2025 in the amount of 651.05 KM, which after adjustment amounts to 723.97 KM.

In accordance with this:

• for beneficiaries with up to 20 years of pension service, the pension cannot be lower than 60% of the average, i.e., 434.38 KM
• for beneficiaries with 20 to less than 25 years of pension service, the pension cannot be lower than 65% of the average, i.e., 470.58 KM
• for beneficiaries with 25 to less than 30 years of pension service, the pension cannot be lower than 70% of the average, i.e., 506.78 KM
• for beneficiaries with 30 to less than 35 years of pension service, the pension cannot be lower than 75% of the average, i.e., 542.98 KM
• for beneficiaries with 35 to less than 40 years of pension service, the pension cannot be lower than 85% of the average, i.e., 615.37 KM
• for beneficiaries with 40 or more years of pension service, the pension cannot be lower than 95% of the average, i.e., 687.77 KM.

The Law further stipulates that beneficiaries of family and disability pensions, for whom the lowest pension amount has been determined, cannot receive a pension lower than 90% of the average pension, i.e., 651.57 KM.

It is important to emphasize that the aforementioned amounts represent only the minimum amount, not the sole pension amount, as pensions are calculated based on acquired service and salary levels and can be significantly higher in each of the listed categories.

The lowest pension for beneficiaries who acquire the right under special regulations (Law on Early Favorable Retirement of Defenders of the Defensive-Liberation War, Law on Special Rights of Recipients of War Decorations and Awards and Members of Their Families, and Law on the Rights of Defenders and Members of Their Families), through amendments to the aforementioned laws, has been set at the amount of the previous lowest pension and amounts to 666.40 KM.

A total of 465,697 beneficiaries will receive their January pension, and the required funds amount to approximately 351,100,000.00 KM.