Adoption of Amendments to the Pension Law Expected in January: Minimum Pension to be 700 KM, Others to Increase

(Patria) - Federal Minister of Labour and Social Policy Adnan Delić stated at today's press conference held at the seat of the Government of the Federation of Bosnia and Herzegovina in Sarajevo that the Government of the Federation of Bosnia and Herzegovina has agreed on the Proposal for Amendments and Supplements to the Law on Pension and Disability Insurance, and that it will be considered at a session next week, after which it will be sent to the parliamentary procedure under an expedited procedure. The adoption of the law is expected in January 2026.

He stated that the minimum pension, which currently stands at 599 KM, will amount to 700 KM next year.

The proposed law introduces a new, fairer model for pension harmonization that combines the growth of average salaries and the growth of the consumer price index in a 60/40 or 40/60 ratio, depending on which option is more favorable for pensioners at a given moment. This solution ties pensions to real economic indicators, making pensioners' incomes more stable and secure.

The key novelty is the transition to semi-annual pension harmonization, which will be carried out twice a year, on January 1st and July 1st, starting from January 1st, 2026. Estimates show that the total pension increase in 2026 could be around 17.2 percent.

The proposed amendments also expand the right to funeral expense compensation, which will no longer be limited only to immediate family members, but will also belong to any person who has actually borne these costs. The amount of compensation is defined as the average paid pension in the previous month.

All financial obligations arising from the new harmonizations have already been planned in the budget of the Federation of BiH. After the Pension and Disability Insurance Fund switched to the treasury model of operation, pension payments are made directly from the budget, which enables more stable and secure realization of these increases.

The proposed amendments are the result of long-term consultations, including with pensioner representatives, as well as an analysis of the sustainability of the pension system, all with the aim of strengthening social security and creating a fairer system for all beneficiaries.

According to Delić's explanation, the guaranteed pension, currently 715 KM, should increase by 121 KM during 2026, while the highest pensions, currently almost 3,000 KM, should increase by about 500 KM, if there is enough money for all increases.