From January to April, 2,500 Business Entities Lost Eligibility for FBiH Government Subsidies Due to Minimum Wage Increase

(Patria) - The Government of the Federation of Bosnia and Herzegovina today, at a telephone session, upon the proposal of the Federal Ministry of Development, Entrepreneurship and Crafts, adopted the Decision on determining the final list of beneficiaries of financial assistance to private employers, crafts, and other independent activities in the Federation of BiH with the aim of maintaining existing jobs for April 2025.

The total funds for the implementation of this decision in the amount of 8,419,950 KM have been secured in the Budget of the Federation of BiH for the Federal Ministry of Development, Entrepreneurship and Crafts and are allocated to 12,398 beneficiaries.

A portion of these funds in the amount of 312,650 KM is allocated to 469 beneficiaries whose appeals against the Decision on determining the final list of beneficiaries of financial assistance for March 2025 have been approved.

The transfer of financial assistance funds to the beneficiaries' transaction accounts will be carried out by Union Bank in cooperation with the Federal Ministry of Finance and the Federal Ministry of Development, Entrepreneurship and Crafts. The federal ministries of development, entrepreneurship and crafts, and finance, as well as the Tax Administration of the Federation of BiH and Union Bank, are responsible for the implementation of this decision, each within their jurisdiction and obligations in accordance with the Decree.

This is the fourth month that the FBiH Government is refunding the difference in contributions to private employers in order to maintain jobs in 2025, after the minimum wage was increased from 619 to 1,000 KM in January this year. The government has allocated 100 million KM for this purpose.

We remind you that the FBiH Government paid 10,394,500 KM for 78,146 workers in January, 9,934,700 KM for 74,190 workers in February, and 8,661,850 KM for 65,363 workers in March. Including this difference based on appeals, the total amount for March is 8,974,500 KM, while 8,107,300 KM was allocated for subsidies in April, which is the smallest amount since the Decree came into force. The government did not disclose the number of workers covered by these 12,398 beneficiaries.

In January, 14,930 business entities and individuals qualified, and in February there was a decrease, so initially 13,697 legal and natural persons qualified, and appeals were accepted for another 634 beneficiaries, totaling 14,331. From the first subsidy for January to this April subsidy, the number of entities that qualified has decreased by 2,532 business entities.

For the first four months, the FBiH Government, through the Ministry of Development, Entrepreneurship and Crafts, has allocated 37,411,000 KM.

It remains unclear why there is a decrease in the number of business entities, and thus workers, who qualify for subsidies. Whether business entities no longer meet the prescribed criteria, whether there has been a decrease in the number of workers, or if there is some other obstacle preventing them from receiving subsidies are questions that the Ministry or the Government should answer.