Employers' Association: We expect urgent finalisation of regulations aimed at mitigating the consequences of the Decision on the minimum wage amount

(Patria) - Immediately after the adoption of the Decision on the minimum wage amount for 2025, the Employers' Association in the FBiH reacted towards the Economic-Social Council of the FBiH with the aim of adopting a set of measures to mitigate the negative consequences of this decision, and above all to preserve the jobs of workers in the real sector, and thus their businesses.

Representatives of the Government of the FBiH and trade unions accepted the employers' proposal to consider measures to mitigate the negative consequences of the Decision, after which two sessions of the Economic-Social Council were held.

In accordance with the conclusions of the ESC sessions, the Government of the FBiH undertook the obligation to draft regulations that would, until the adoption of permanent systemic solutions, reduce the pressure on the economy, i.e., alleviate the burden on employers based on additionally increased wages and especially obligations on account of workers' gross wages.

The Employers' Association in the FBiH, respecting the written and other expressed interests and suggestions of employers, chambers, branch and local employers' associations, the academic community and associations, harmonised the positions of social partners insisting on the expansion of the budget, but also on delegating priorities and criteria with the aim of protecting and sustaining companies and crafts.

The Government is currently finalising two regulations - one relating to the refund of part of contributions between the previous minimum wage of 619 KM and the newly established one of 1,000 KM, and another that enables the payment of aid to workers for wages above 1,000 KM.

In the past period, the Management Board of the UPFBiH held five extraordinary sessions, practically sitting continuously and seeking the best solutions. Work continues during the weekend, aware that urgent intervention measures are necessary to avoid serious consequences for jobs and the economy.

Employers continue to express concern over the adopted Decision, the burden of which is borne by all employers – small, medium, large, exporters, craftsmen and others, because it is clear that it is not easy to find fair and sustainable solutions in these circumstances.

"We ask the authorities for additional flexibility and full understanding, because no segment of the economy is spared the consequences of the adopted and current Decision.

The Government must recognise the urgency of the situation and find additional resources and mechanisms to protect both employers and workers - even before the adoption of permanent systemic solutions.

In addition to temporary and transitional solutions, employers particularly insist on their long-standing demand for a reduction of enormous business burdens, and in this specific case, the fulfilment of the given announcements by government representatives regarding the entry into force of the Law on Fiscalisation of Transactions in the FBiH from July 1, 2025, and the adoption of fiscal regulations no later than September 1, 2025, with full application from January 1, 2026, which will enable the payment of contributions at a rate of 28.5%.

Even then, this will be only part of the expected measures and systemic solutions that employers in the Federation demand from the authorities. Others relate to the abolition or reduction of para-fiscal burdens, amendments to the workers' health insurance system, resolving export barriers, eliminating unfair competition through the existence of a grey market in almost all branches of the economy, regulating the labour market and numerous other issues.

We expect the Government to urgently proceed with the implementation of these measures in order to ensure the stability of the business environment and prevent negative consequences for the economy," they stated from the Employers' Association in the FBiH.