FBiH Government promised a reduction in contributions from 41.5 to 36 percent from July 1 in FBiH

(Patria) - At the thematic session of the Committee for Economic and Financial Policy of the House of Representatives of the Parliament of the Federation of Bosnia and Herzegovina, held today, dedicated to the effects of the minimum wage and fiscal reforms in the Federation, it was stated that the Government of the Federation of BiH intends to reduce the contribution rate from 41.5 to 36 percent from July 1, specifically by 5.5 percent. The application deadline is from July 1 this year.

Parallel to this session, a session of the Economic and Social Council (ESV) for the territory of the Federation was held in Sarajevo.

- Neither the Prime Minister nor the Deputy Prime Ministers could attend this session due to the ESV. The ministers are waiting for the session to end so they can hold a session of the FBiH Government. Both the Economic and Social Council and the FBiH Government are proceeding with amendments to the laws that would reduce the cumulative rate related to contributions from 41.5 to 36 percent as of 01/07/2025, and a second iteration would follow - said Damir Mašić, president of the SDP Caucus in the House of Representatives of FBiH.

This information was also confirmed by Adnan Smailbegović.

- The FBiH Government has come up with a proposal for amendments to the Law on Contributions by reducing contributions by 5.5 percent with an application deadline of July 1 this year. This is a solution, and we told the Government that we would have been happier if we had a final solution, if it was 10.5 percent, but it's okay - Smailbegović told Faktor.

He added that employers requested the extension of the decision on exemption from contributions for employers for salary increases above 1,000 KM up to 450 KM.