Employers demand urgent changes to the law on contributions and income tax, which could lead to wage increases

(Patria) - In line with the announcements made in the final days of last year, the Employers' Association in the Federation of Bosnia and Herzegovina has submitted, through authorized proposers of laws, an initiative for amendments and supplements to the Law on Contributions of FBiH and the Law on Income Tax of FBiH. As previously announced, the ultimate goal of the amendments and supplements to these laws is to increase all wages of employees in the real sector by an amount ranging from 100 to 400 KM. According to the proposed amendments and supplements to the two laws, business entities and craftsmen would pay only reduced contributions for pension and disability insurance on these increased net wages, which would allow the total wage increase to go directly to the workers. 

The amendments and supplements to the Law on Contributions of FBiH and the Law on Income Tax of FBiH have been harmonized with the Independent Trade Unions Confederation of Bosnia and Herzegovina, i.e., with trade unions from the real sector. 

We remind you that through seven signed collective agreements with trade unions from the real sector, the minimum wage has been increased to an amount between 630 and 775 KM, depending on the activity, which is a significant increase compared to the minimum wage amount determined by the Government of FBiH. By proposing amendments and supplements to the Law on Contributions of FBiH and the Law on Income Tax of FBiH, the UPFBiH and trade unions from the real sector want to ensure a more significant increase not only in the minimum wage but also in all other wages of employees in the real sector in FBiH. 

The UPFBiH has requested the competent bodies of the FBiH Parliament to consider the proposed amendments and supplements under an urgent procedure. They also call on deputies and delegates in the FBiH Parliament to support the proposals of the UPFBiH and the Independent Trade Unions Confederation of BiH, as their adoption will contribute to the increase of all wages in the real sector, the improvement of citizens' living standards, and will influence the reduction of labor outflow from BiH, without jeopardizing the inflow of funds into the budgetary and extra-budgetary funds of FBiH.