Amendments to the Law on Contributions in the FBiH Parliament under expedited procedure

(Patria) - The Government of the Federation of Bosnia and Herzegovina at today's session in Sarajevo, upon the proposal of the Federal Ministry of Finance, adopted the Proposal for the Law on Amendments to the Law on Contributions, which will be forwarded to the Parliament of the Federation of BiH for further consideration and adoption under an expedited procedure.

This proposed amendment was earlier today considered and accepted at the session of the Economic and Social Council for the territory of the Federation of BiH.

The proposed legal solution reduces the aggregate contribution rate by 13.25 percent, i.e., by five and a half index points, from 41.5 percent to 36 percent. Specifically, 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.

The proposer clarifies that the proposed amendments to the Law on Contributions are part of a set of fiscal measures that the Government of the Federation of Bosnia and Herzegovina plans to implement through its work programs, particularly relating to new laws on contributions and income tax.

Also, the proposer in the reasons for adopting this proposed law cites the relief of the economy and the reduction of the cost of wages for employers, especially considering employers who in 2025 will have a higher wage cost for employees who are paid in accordance with the Decision on the amount of the minimum wage.

At the same time, the proposed amendments fully implement the judgment of the Constitutional Court of the Federation of Bosnia and Herzegovina U-22/21 of March 21, 2023.

It is proposed that the law enter into force on the day after its publication in the Official Gazette of the Federation of BiH, and that it begin to apply from July 1, 2025.