Employers in the FBiH Government: Continue and Accelerate the Started Reform Processes

(Patria) - A meeting of representatives of the Government of the Federation of Bosnia and Herzegovina and the representative Association of Employers in the FBiH was held today at the premises of the FBiH Government. On behalf of the FBiH Government,
the meeting was attended by Prime Minister Nermin Nikšić, Deputy Prime Minister and Minister of Finance Toni Kraljević, Deputy Prime Minister and Minister of Development, Entrepreneurship and Crafts Vojin Mijatović, Minister of Justice Vedran Škobić, and Minister of Energy, Mining and Industry Vedran Lakić.

The delegation of the Association of Employers in the FBiH included UPFBiH President Adnan Smailbegović, Director Mario Nenadić, and members of the UPFBiH Management Board Safudin Čengić, Adem Hanić, Ladislav Bevanda, and Rasim Memagić.

Representatives of the UPFBiH emphasized the priorities for the current year adopted by the Association's Management Board, which relate to fiscal and parafiscal reforms and the liberalization of the labor market.

“It is necessary to continue and accelerate the reform processes regarding fiscal and parafiscal burdens on the economy in the FBiH, and especially to resolve the issues of contributions, income and profit tax in a quality and sustainable manner, and in that context, regulate the issue of the minimum wage and other earnings of employees in the real sector in the FBiH,” the meeting participants agreed.

Representatives of the FBiH Government pointed out the importance of maintaining balance within the system, taking into account the negative trend in filling the Pension and Disability Insurance Fund, as well as the sustainability of the system of other obligations towards beneficiaries in the FBiH. Until the adoption of the set of fiscal regulations and fiscalization, employers were invited to maximally use, as a transitional solution, the decisions of the FBiH Government on increasing workers' earnings through the payment of tax-free amounts of aid approved by the relevant Decree on the payment of aid by employers and the payment of one-time aid, and to continue discussions with government representatives.

During the meeting, employers emphasized the importance of reforming and liberalizing the labor market in the FBiH, through the urgent adoption of the Law on Mediation in Employment and Social Security of Unemployed Persons, the Law on Employment of Foreigners in the FBiH, and the Labor Law. These laws have been prepared and submitted for procedure, and their imminent consideration and adoption is expected.

It is particularly important that these regulations separate the records of unemployed persons from active job seekers, which creates great confusion in the labor market in the FBiH. Employment programs and projects in the FBiH, as well as projects and funds for special purposes, employment and professional rehabilitation of persons with disabilities and other excluded groups in the labor market, need to be constantly updated and adapted to current needs, on which representatives of the relevant Ministry of Labor and Social Policy of the FBiH will continue to work with employers and other interested groups.

“Reform of health insurance and healthcare is another important and priority issue for the business environment,” emphasized the employers, with which the members of the FBiH Government also agreed.

The current legal solution is not appropriate, according to which the total burden of 42 days of sick leave in the FBiH falls exclusively on employers, and that the obligation to treat work injuries, regardless of the employer's fault and responsibility, is transferred solely to employers. Health insurance and protection need to be restructured and modernized, and continued joint work of government and employer representatives on upcoming reforms in this area, led by the relevant Ministry of Health in the FBiH Government, is supported.

Another important issue that employers have placed high on the priority list is the issue of electricity prices and preparations for the processes of special obligations according to EU rules, which relate to the issue of paying special obligations for the use of “dirty” energy, which will begin as early as January 1, 2026, for which the system in BiH, including exporters and the economy, needs to prepare well and thoroughly in order to improve and preserve their competitiveness in the foreign market as much as possible.

At the request of employers, the Prime Minister announced the resolution of issues that led to the blockade of the work of the Economic and Social Council for the territory of the Federation of BiH, as a key focal point of discussions between representatives of the government and representative associations of employers and trade unions in the FBiH.

The Minister of Justice invited representatives of employers to actively participate in the preparation of the new Law on Criminal Procedure, in order to update certain provisions of this law that relate to issues of adaptation to the new system and EU standards, and to ensure legal certainty for foreign and domestic capital investors, small investors and creditors, which has already been regulated by neighboring countries, as well as the Republika Srpska with its law.

These and numerous other issues were the subject of a very constructive discussion among the meeting participants, and among other things, the need to align the education system with the needs of the labor market, and upcoming announcements of grants and projects intended for entrepreneurs in the FBiH were also discussed.

It was also concluded that the established practice of exchanging information on priorities and initiated activities will continue through the announced establishment of the Economic and Social Council and regular monthly review meetings of the FBiH Government and the Association of Employers in the FBiH.