Nikšić accuses employers of not raising wages: Contribution collection increased for both PIO and health insurance despite fewer employees

Written by: Amra Vrabac

Statement by Federation Prime Minister Nermin Nikšić that in the past two months, since the application of lower contribution rates for PIO/MIO began, a shortfall of 40 million KM has been recorded and that they must compensate for this from the budget, does not align with the official data of the FBiH Tax Administration.

Nikšić blamed this shortfall on employers who did not increase wages for workers, even though the FBiH Government enabled them to reduce contributions for PIO and health insurance. He even announced that he would not proceed with an additional reduction of the contribution rate, despite the FBiH Government promising an additional reduction from the beginning of 2026.

But this story from the Federation Prime Minister also lacks the data that the Decree on the payment of tax-free aid from private employers to workers, in the maximum amount of 400 KM per worker, is still in effect. Numerous employers have taken advantage of this relief and increased their workers' incomes. So it would be fair for Prime Minister Nikšić to also present that data, and not just criticism directed at employers who certainly fill the budgets from which Nikšić's high salary is also paid.

But let's see what the official numbers from the FBiH Tax Administration actually show.

In the January-June period, 1,720,874,948 KM was paid in PIO contributions. The number of employees at that time was 547,055. In June, before the application of the lower PIO contribution rate began, 293,320,680 KM was collected.

In July, 246,729,948 KM was collected for PIO, which is 46,590,732 KM less than in June. However, the number of employees also fell compared to June, amounting to 545,018.

In August, although the number of employees continued to fall to 541,921, 309,083,243 KM was collected for PIO contributions. Therefore, compared to July, despite the drop in the number of employees, collection increased by 62,353,295 KM. How, if employers did not increase wages as Nikšić claims?

The difference in the collected amount in August compared to June, when the rate was not reduced, is 15,762,563 KM, while the number of employees in those two months is lower by 5,134.

Nikšić's theory that there were no wage increases falls apart, as it is contradicted by data from the FBiH Tax Administration. Data from the FBiH Tax Administration tables show total collection in the period from January to June and from January to August. Thus, from January to June, 1,720,874,948 KM was collected for PIO contributions, and in the January-August period, 2,276,688,139 KM.

Instead of worrying about the decline in the number of employees and the constant increase in the number of pensioners, because in that case the FBiH Government will have to allocate significant amounts for pension payments, Nikšić attacked employers, whose reaction is awaited.

Although he spoke exclusively about PIO contributions, we also calculated the situation with health insurance contributions, whose rate has also been lower since July.

In the January-June period, 1,222,537,457 KM was collected from health contributions. In July, 174,220,774 KM was collected, which is 34 million KM less than in June. However, in August, 236,481,893 KM was collected from these contributions, which is 28 million KM more compared to June.

Compared to the January-June period, in August this amount was higher by 410,702,667 KM, when the total collection was 1,633,240,124 KM.