FBiH Government reduces minimum wage subsidies due to lower contribution rates, extends decree on tax-free aid payment

(Patria) - The Government of the Federation of BiH has decided to reduce the amounts of subsidies for contributions to private employers, given that lower contribution rates have been applied since July 1.

Due to this, the FBiH Government has reduced the previous subsidy amounts, and the President of the Economic and Social Council (ESV), Safudin Čengić, spoke about the new subsidy amounts and other topics after the session.

"The FBiH Government proposed to extend the Decree on the payment of tax-free aid to employees until the end of this year, and the previous amount has been reduced from 450 to 400 BAM per month per employee," said Čengić, adding that all partners agreed with this proposal.

Regarding the second decree intended to help employers who experienced increased costs after the minimum wage increase, the Government proposed a change in the subsidy amounts.

“In the past six months, the Government has paid out about 45 million BAM in subsidies for these wages. Today, we considered the proposal for a new decree: for wages from 620 to 700 BAM, 200 BAM in subsidies will be paid; from 700 to 800 BAM, 100 BAM will be given; and from 800 to 900 BAM, 50 BAM," stated Čengić.

He also added that at today's session, a stance was taken that it is necessary for the Government to prepare certain legal solutions to improve the status of pensioners.

As Patria has learned, the ESV session also discussed the Law on Fiscalization of Transactions, which the FBiH Government should submit to the parliamentary procedure by the end of August.