Law on Pension and Disability Insurance Adopted: Pensions to Increase by 11.6% from February 5, and by 17% from Mid-Year

(Patria) - The House of Peoples of the FBiH Parliament adopted amendments to the Law on Pension and Disability Insurance this evening, confirming one of the long-awaited and most significant steps in the reform of the pension system in FBiH in recent years.

The adoption of the Law has created conditions for the payment of increased pensions to begin as early as February 5, 2026, for all 465,000 pensioners in the Federation of BiH, with an increase of 11.6 percent as part of the first, January harmonization.

In accordance with the new Law, pensions will further increase by 5 to 6 percent in the second, semi-annual harmonization, which will ultimately mean a total increase in pensions of 17 percent in 2026.

- This is the result of a new, predictable formula for pension harmonization, which is based on a combination of the consumer price index and the average wage index in a 60 to 40 percent ratio and vice versa, with the application of the more favorable indicator for pensioners in each specific calculation.

This removes uncertainty about future pension increases for the first time and ensures regular and fairer harmonization - said the Federal Minister of Labor and Social Policy, Adnan Delić.

In addition to the new harmonization model, the Law introduces a number of other important changes, including the introduction of two regular pension harmonizations per year, instead of the current one, more precise regulation of the right to funeral cost compensation, thereby extending the right to individuals who have actually borne these costs, and amendments to Article 81 which involve the introduction of differentiated minimum pensions in accordance with years of service.

The Law stipulates that acquired pensioner rights cannot be reduced, that pensions cannot be decreased, and that harmonization can only be carried out in the direction of their increase.

The minimum pension is protected and continues to grow in accordance with the new legal solution.

Delić stated that the adoption of the Law is an important message of security for pensioners.

- From February 5, all pensions will increase for all 465,000 pensioners. There is no longer fear and uncertainty about how much pensions will increase because the new formula is clear, predictable, and linked to real economic movements - Delić assures.

We remind you that the adoption of this law is the result of the demands of the Union of Pensioners' Associations in FBiH, and the Conclusion of the House of Representatives of the Parliament of the Federation of BiH arising from a thematic discussion on the state of pension and disability insurance, possibilities for improving pensioners' standards, and the long-term sustainability of the system.

Following that session, the Parliament tasked the Government of the Federation of BiH to prepare a legal solution that simultaneously improves pensioners' incomes and strengthens the stability of the system.

With the adoption of amendments to the Law on PIO in both houses of the Parliament of the Federation of BiH, the Federation of BiH finally gets a more stable, predictable, and fairer pension system, while pensioners will receive a noticeable increase in their income as early as February, it was announced this evening from the Federal Ministry of Labor and Social Policy.