NIKŠIĆ AT THE HELM: Employers and workers await FBiH Government's decision on extending the Decree on payment of non-taxable monthly aid

(Patria) - The Decree on payment of aid to workers by employers, adopted by the FBiH Government at the beginning of February 2025, expires on July 31.

At the last session of the Economic and Social Council, it was highlighted that the FBiH Government is committed to extending the decree, but that the monthly amount of 450 KM will be somewhat lower, considering that lower contribution rates also came into effect on July 1. For example, on a salary of 1,000 KM, the employer will pay 86 KM less in taxes, while on a higher salary, this saving is even greater.

The President of the ESC for the FBiH territory, Safudin Čengić, told Patria today that he has information that the FBiH Government is preparing a decision to extend this decree.

“There is interest from employers who have increased workers' incomes in this way, and I think it will be extended very soon,” said Čengić, adding that a large number of employers have used this right.

He could not specify by how much the monthly non-taxable amount would be reduced and stated that this decision remains with the FBiH Government.

The employers' request was for the decree to be extended until the end of 2025.

We remind you that the FBiH Government adopted two decrees at the beginning of February to ease the burden on employers after the minimum wage increased from 619 to 1000 KM. In addition to the increase in minimum wages, employers also had the obligation to increase other wages, so the Government enabled the payment of a non-taxable monthly amount per worker of 450 KM. The second decree concerns measures of financial assistance to private employers, crafts, and other independent activities in the Federation of Bosnia and Herzegovina in order to maintain existing jobs for 2025, which is valid until the end of this year. It relates to the refund of part of the contributions after the increase in the minimum wage.

According to the Decree on the payment of aid to workers, employers were obliged to submit data on the paid aid for the previous month to the FBiH Tax Administration by the 7th of the month.

Since the decree ceases to be valid on July 31, employers preparing the calculation of July salaries are still awaiting information on whether the decree will be extended and what monthly amount they can include for workers, especially those who will pay their July salary in August.