UNSUSTAINABLE SYSTEM: 6,434 fewer employed in FBiH in seven months, while pensioners increased by 5,670

(Patria) - At the end of July, the difference between the number of employed and pensioners in FBiH was 85,448, a worrying figure for both the government and employers.

At the end of December 2024, the number of employed in the Federation of BiH was 551,452. At the end of January 2025, the number of employed was 546,863, which is 4,589 fewer employed.

In the first six months, the number of employed fluctuated, and during April, May, and June, the number of employed increased. However, data for July show that the number of employed dropped by 2,037 people in just one month. As of July 31, 2025, there were 545,018 employed persons.

Thus, the difference between the number of employed at the end of 2024 and at the end of July is 6,434 people. Seven months were not enough for the number of employed to return to the December figure, let alone increase.

At the same time, the number of pensioners receiving pensions from the Federal Pension and Disability Insurance Institute (PIO/MIO) in December was 453,900 beneficiaries. A total of 459,570 beneficiaries received pensions for July. From the end of December to the end of July, the number of pensioners increased by 5,670. The ratio of employed to pensioners in FBiH is 1.186. The European average is 1.7, and some countries even have three workers per pensioner. Currently, FBiH needs between 200,000 and 220,000 more employed to reach the EU average.

Data from the FBiH Tax Administration show that in July 2025, PIO contributions were collected in the amount of KM 246,729,948. Compared to June, KM 46,590,732 less was collected because the application of lower PIO/MIO and health insurance contribution rates began on July 1. For health insurance, KM 208,472,099 was collected in June, and KM 174,220,774 in July.

The payment of July pensions required KM 384 million, including a one-time supplement of KM 100 to KM 250. In June, KM 310 million was needed to pay regular pensions to 458,632 beneficiaries.

Although the authorities in FBiH claim that the pension system is stable, this trend is worrying and unsustainable.

In 2024 alone, KM 512 million was allocated from the FBiH Budget for pension payments because there was not enough money.

The monthly increase in the number of pensioners is not matched by an increase in the number of employed.

It is evident that FBiH lacks labor, and although there is still a large number of people on unemployment records, workers are very difficult to find for some jobs. This is particularly noticeable in hospitality and service industries, while quotas for foreign workers are increasing.

Economic experts warn that this situation is unsustainable and that BiH is turning into a country of the elderly, as the situation regarding the number of employed and pensioners is very similar in RS.

Here is the age structure of the employed in FBiH.