FBiH Government has three days to announce minimum wage decision for 2026, 6,000 jobs lost in one year

(Patria) - The Government of the Federation of BiH has three more days to announce the decision on the minimum wage for 2026, as well as to potentially adopt a new decree on non-taxable aid that employers can pay to workers. Although during 2025 this amount was 450 KM, and from July 2025, when contributions were reduced by 5.5 percent, it was reduced to 400 KM, it is now expected that it will be possible to pay around 250 KM per month. It is still unknown whether the refund and co-financing of contributions and financial aid measures for low-accumulation activities will continue.

We did not receive specific information from the FBiH Ministry of Finance whether this is the direction being taken.

The minimum wage will amount to 1,027 KM, which was reached using the formula applied for calculating the minimum wage. After last year's government decision to raise the minimum wage from 619 KM to 1,000 KM, there is no such "shock therapy" this year. Employers have also warned the government that such a new jump could stifle the economy.

Representatives of the Employers' Association in the Federation of Bosnia and Herzegovina held a press conference this week where they spoke about the application of the Law on Internal Trade, which has prohibited Sunday work for retail stores for over a year, and about the impact of the minimum wage increase on micro and small businesses. Employers themselves confirmed that layoffs have been recorded.

Although employers are not against wage increases, on the other hand, insufficient productivity growth will bring inflation and loss of profitability, which will affect the entire economy.

Employers called on the Government to continue with fiscal reforms in order to reduce the grey market and create space for increasing wages and workers' standards. After the new Law on Fiscalization of Transactions is adopted, further reduction of employer-borne contributions will be possible.

Regarding the number of employees, during 2025 there was a decrease compared to December 2024. At the end of December 2024, there were 551,452 workers employed in the Federation of BiH, while on December 1, 2025, 545,851 employees were registered, which is 5,601 fewer employees.