Amendments to the Contributions Law on the FBiH Parliament Session on April 2nd: Contribution Rate Reduced

(Patria) - The Bill on Amendments to the Contributions Law, which was determined by the Government of the Federation of Bosnia and Herzegovina last month, has been announced as an agenda item for the House of Representatives of the Federal Parliament for the session convened for April 2nd.

- The proposed legal solution reduces the aggregate contribution rate by 13.25 percent, or by five and a half index points, i.e., from 41.5 percent to 36 percent. Namely, the contribution rate for pension and disability insurance borne by the employer is reduced by three and a half index points, as well as the contribution rate for health insurance borne by the employer by two index points – stated the Government.

It is clarified that the proposed amendments to the Contributions Law are part of a set of fiscal measures that the Government plans to implement based on its work programs, which particularly relates to new laws on contributions and income tax.

The proposer cites the reasons for adopting this law as relieving the economy and reducing payroll costs, especially considering employers who will have higher payroll costs in 2025 for employees whose salaries are paid in accordance with the Decision on the amount of the minimum wage.