FBiH Government prepares 125 million KM for subsidies due to minimum wage increase, relief also for other wage increases

(Patria) - Following today's session of the Economic and Social Council, a press conference was held where measures to be adopted by the FBiH Government were presented.

The President of the ESC, Safudin Čengić, stated that they support the FBiH Government's activities in improving the standard of living for workers in FBiH, and reducing contributions on salaries higher than 1,000 KM.

"The method of refunding contributions for the portion of the minimum wage from 619 to 1,000 KM, with a maximum of 304 KM, will be defined. This will be defined by specific legal acts," said Čengić.

He particularly highlighted as positive the fact that employers who increase workers' salaries of 1,000 KM or more by an additional amount will have a tax-exempt maximum of 450 KM.

"Regarding the set of fiscal laws, it was concluded that they must be adopted by September 30th so that they can be applied from 01.01.2026. Social partners will participate in the preparation of the laws," said Čengić.

The Director of the Employers' Association of FBiH, Adnan Smailbegović, stated that out of the 465 million KM in additional contributions that employers will pay, around 150 million KM will be returned.

“This is for salaries up to 1,000 KM. The key is to create quality criteria for refunding funds. To help those companies that will find it difficult to bear this, to provide them with assistance. The money is limited, and we have a promise that we will participate in creating the decree that will be adopted at the next ESC session," said Smailbegović.

The Federal Prime Minister, Nermin Nikšić, stated that the money the FBiH Government will provide for refunds does not come from the funds paid by employers.

"The budget provides 100 million KM for refunds and subsidies. We will determine who is entitled to it by decree. If the amount is not sufficient for us, we will increase the amount. By a special decree, we will provide support to employers who prove with payrolls for November and January that they have increased salaries above 1,000 KM, to be exempt from contributions,” said Nikšić.

Nikšić emphasized that their desire is to adopt the Law on Fiscalization in February or March and for its application to begin on July 1st.

Nikšić added that they will first proceed with amending the Law on Contributions and will relieve employers.

"We will try to use this opportunity to work together on these solutions, and especially to resolve the status of pensioners. We will seek a way to increase pensions or provide one-time assistance," said Nikšić.