Pensions in the Federation of Bosnia and Herzegovina increased by five percent

(Patria) - The Government of the Federation of Bosnia and Herzegovina has approved an advance adjustment of pensions in the amount of five percent as of January 1, 2024, which will be paid to pensioners starting from February this year.

The Government of the Federation of BiH, at today's emergency session held by telephone, upon the proposal of the Federal Ministry of Labor and Social Policy, took note of and approved the Decision of the Management Board of the Federal Pension and Disability Insurance Institute on the advance adjustment of pensions in accordance with Article 79 of the Law on Pension and Disability Insurance, in the amount of five percent.

The Federal Government is committed to enabling, in accordance with this law, an advance adjustment of pensions starting from January 1, 2024, taking into account the consequences of global inflation and the material position of pensioners.

As explained, Article 79 of the Law on PIO stipulates that pensions are adjusted on April 15 of each year in such a way that the adjustment is made in the amount of the sum of 50 percent of the percentage increase in consumer prices and 50 percent of the percentage increase in the gross domestic product in the Federation in the previous year, according to data from the Federal Institute of Statistics, except for pensions realized in the year in which the adjustment is made, and at most up to the rate of growth of the gross domestic product in the previous year.

The Federal Pension and Disability Insurance Institute submitted to the Federal Ministry of Labor and Social Policy the Decision of the Management Board of the Institute on the advance adjustment of pensions in accordance with Article 79 of this law in the amount of five percent, which is in line with the planned and available funds of the Institute for the current year. This decision stipulates that pensions are adjusted in advance by five percent, except for the highest pensions realized under the Law starting from March 1, 2018, and pensions realized in 2024, with the exception of minimum and guaranteed pensions. Also, the basis for the increase is the pension that the beneficiary was entitled to for the month of December 2023.

The explanation also states that, according to available data on the movement of gross domestic product (GDP) and the consumer price index (CPI), it is estimated that the percentage of regular pension adjustment starting from January 1, 2024, should range between six and seven percent.

The final adjustment of pensions will be made on April 15 of this year, after the Federal Institute of Statistics publishes data on the growth of consumer prices in 2023, as well as the growth of gross domestic product for the past year.