PUBLISHED IN THE OFFICIAL GAZETTE Subsidies and tax-free employee aid payments effective today

(Patria) - Two decrees of the FBiH Government were published in the Official Gazette of FBiH yesterday, and they come into effect today. These are decrees adopted due to the increase in the minimum wage from 620 to 1000 KM, and to mitigate the increase in costs for employers.

The decree on the payment of aid to employees by employers stipulates that employers can pay employees an additional 450 KM per month without paying taxes on that amount. In accordance with financial capabilities, employers can pay a smaller amount, or different amounts to employees based on the employer's decision. Employers cannot reduce an employee's salary that was calculated and paid for the month of November 2024 in order to pay this aid.

"The employer is obliged, by the 7th of the month for the preceding month in which the aid was paid, to submit a Report on Aid Payment to the competent Tax Office. The Tax Administration will, upon receipt of the aforementioned Report, control the fulfillment of the conditions for aid payment prescribed by this decree," the decree states.

A Decree on measures of financial assistance to private employers, crafts, and other independent activities in FBiH in order to maintain existing jobs for the year 2025 has also been published.

The total financial resources for the implementation of this decree are secured in the Budget of the Federation of Bosnia and Herzegovina for 2025 in the amount of 100,000,000.00 KM.

The financial assistance funds under this decree will be used for the refund of the paid portion of contributions for the number of employees that the beneficiary had as of November 30, 2024, who had a net salary of less than 1,000.00 KM and who have continuity in employee insurance registration during 2025.

The total amount of financial assistance per beneficiary is a maximum of 250,000.00 KM.

In the event that, due to the large number of potential beneficiaries of financial assistance, the total financial resources secured by the Budget of the Federation of Bosnia and Herzegovina for 2025 for the implementation of this decree in the amount of 100,000,000.00 KM are insufficient, the funds for all potential beneficiaries of financial assistance will be proportionally reduced.

The Government of the Federation of BiH reserves the right to allocate additional funds for the implementation of this decree in accordance with its financial capabilities.