Subsidies from the FBiH Government from KM 45 to KM 300 per employee due to minimum wage increase, company profit less than KM 500,000

(Patria) - The session of the Economic and Social Council for the territory of the Federation of BiH has been postponed to Monday, February 3. Not all members of the ESC were explained why the session, which was supposed to be held on January 31, was postponed.

According to Patria's information, the FBiH Government will present measures and legal acts at this session related to the calculation and payment of the minimum wage, as well as criteria for refunding or co-financing contributions in accordance with the Decision on the Minimum Wage for 2025.

The President of the Employers' Association of FBiH, Adnan Smailbegović, told the media that they received the FBiH Government's document on criteria for subsidies and incentives on Wednesday, and has already announced numerous objections to the proposed document.

The subsidies apply to crafts, small and micro enterprises, which is contentious for employers, and the condition that employers must meet is to have realized a net profit of less than KM 500,000 in their last financial report and to have preserved jobs.

It is already clear that the January salary will be delayed for numerous employees whose employers do not know how to calculate salaries and whether they can count on subsidies.

The Patria News Agency has obtained the FBiH Government's proposal for calculating financial assistance, which relates to four different coefficient amounts multiplied by the number of employees.

Coefficient 1 is KM 45 and applies to all employees of employers whose contributions were paid on a net salary of KM 800.01 to KM 999.99 as of December 31, 2024. Therefore, if a craftsman had two employees with a net salary of KM 805, due to the salary increase to KM 1,000 for these two employees, they will receive KM 90 in assistance, regardless of the fact that their costs are higher due to the increase in salary and contributions.

Coefficient 2 is KM 90 for all employees whose contributions were paid on a net salary of KM 700.01 to KM 800.00.

Coefficient 3 is KM 135 and applies to employees whose contributions were paid on a net salary of KM 620.01 to KM 700.00 as of December 31, 2024.

The highest coefficient is 4, which is KM 300 and applies to all employees whose contributions were paid on a net salary of KM 620 as of December 31, 2024.

After the last session of the Economic and Social Council, it was emphasized that the largest individual subsidy would amount to KM 304.

If the potential beneficiary/employer reduces the number of employees at the end of the current month in 2025, they lose the right to a refund for that month, but can regain this right the following month if they meet the job preservation condition. If an employer reduces the number of employees in January, they cannot receive a refund for that month.

Exemptions from the application of this decision include coal mines, the leather footwear industry, and low-accumulation activities, traditional and old crafts that are also exempt from the decision on the minimum wage of KM 1,000, i.e., they have a preferential contribution rate.

At a press conference held by the Collegium of the FBiH Government on January 8, Federal Prime Minister Nermin Nikšić stated that the number of employees receiving a salary below KM 1,000 is 187,690.

The FBiH Budget for this year provides KM 100 million for employer subsidies.