FBiH GOVERNMENT CAUSES CHAOS While the private sector wisely remains silent, budget beneficiaries will receive BAM 2,520 each

By Amra Vrabac

Under the guise of increasing the minimum wage and helping workers, the FBiH Government has passed a decree allowing the payment of BAM 2,520 by the end of June 2024 at the latest, without associated taxes. Employers are given the option to act on the Decree or not, to pay part of the aid or none at all. There are no announcements from the private sector that they will pay this aid to their workers, although the Government stated that it can be paid in six equal installments.

Instead of the private sector, employees on the Budget will be pleased. Thus, the FBiH Government has made a decision that all those who receive a salary from the Budget of the Federation of BiH will receive one-time financial assistance from their employer, and the first installment will amount to BAM 1,260. The rest of the money will be paid by the end of June.

It seems that the FBiH Government also passed this decree to help workers who are on the Budget. The story that workers receiving the minimum wage of BAM 596, with an installment of BAM 420 they would receive for six months, will have a "minimum" salary of BAM 1,016 is a story for children.

Instead of a set of fiscal laws that would relieve employers and reduce payroll taxes, which would truly open up space for increasing both the minimum and other wages, the Government has opted for a measure from which, apparently, only budget beneficiaries benefit. And it is precisely from high taxes that budgets and pension funds are filled. It is clear why the Government is not in a hurry to adopt these laws.