Minimum wage increase expected in FBiH, amount to be known by December 20

(Patria) - The President of the Economic and Social Council (ESV), Safudin Čengić, stated after the ESV session that the implementation of measures and decrees of the FBiH Government was discussed.

“We were presented with the amounts paid to the business community. The final figure is over 65 million KM for approximately 11,000 entities, an average of 51,000 employees per month”.

He added that the ESV's initiatives for amendments and supplements to the Law on Contributions and amendments and supplements to the Law on Health Insurance were also discussed.

“Regarding the amendments to the Law on Contributions, it will be subject to discussion and adoption after the adoption of the Law on Fiscalization of Transactions in FBiH. Expectations, according to the Prime Minister, are that this will be completed in the first half of 2026. And then, from July 1, we would proceed with reducing the burden of labor. As for the Decree on the amount of daily allowances during official travel, a proposal for amendment has been adopted, prepared, and will be submitted to the FBiH Government for adoption. At the state level, it is 40 KM, the proposal is 45 KM", said Čengić.

Special attention was paid to the minimum wage for 2026.

"It was agreed that by the end of the day, two representatives from each social partner will submit their proposals next week and try to agree on a proposal that would go to the ESV. I hope that by December 20, we will have a final proposal and adopt any changes to the minimum wage and possibly assistance to employers and the non-taxable portion that we had in 2025".

Speaking about the minimum wage, Čengić said that everyone must be responsible, including representatives of employers and trade unions, as well as the Government itself.

"We must not jeopardize the existence of any job or company," said Čengić.

Regarding sick leave, the Employers' Association of FBiH (UPFBiH) requested that the burden be reduced from 42 to 15 days borne by the employer, with the remainder borne by the Fund.

"We definitely have abuses of sick leave; a large number of people are officially on sick leave but are working. This must be said loudly; I am not saying it is a huge number, but they exist," said Čengić.

Speaking about the Law on Fiscalization of Transactions, he said that there will be no prosperity until everything is introduced into the system.

"All those who generate revenue are obliged to report it to the state and, if applicable, pay taxes," he said.

The President of the Federation of Independent Trade Unions of BiH (SSSBiH), Samir Kurtović, stated that their proposal is for the minimum wage to be 1200 KM, with others adjusted according to qualifications.

"There must be a difference between basic, secondary, vocational, and higher education. If the minimum wage is 1,200, then a person with a secondary education must earn more. The contributions reduced for employers should have been added to the salary, not kept by the employers. Salaries must rise because other costs are also rising," said Kurtović.