KS Government: Ordinance on the procedure for financing part of the salary in FBiH for April and May adopted

(Patria) - The Government of Sarajevo Canton adopted, at today's session, upon the proposal of the Ministry of Economy, the Ordinance on the procedure for financing part of the minimum net salary in the Federation of BiH for the months of April and May 2020.

It was announced that a Public Call will be issued at the end of the week, to which business entities that meet the conditions prescribed by this ordinance will be able to apply. Business entities, i.e., legal and natural persons who meet the following conditions can claim the payment of part of the minimum monthly net salary for April and May 2020:

- independently perform registered business activities, which are based in Sarajevo Canton or have a business unit based in Sarajevo Canton or based outside Sarajevo Canton within the Federation of BiH, but have a business unit within Sarajevo Canton that is part of the business entity.

- If they had a drop in turnover in April 2020, or in May 2020, compared to the average monthly turnover in 2019, as follows: greater than 40 percent to 70 percent or greater than 70 percent,

- that by the date of the public call, they have fulfilled their obligations from public revenues as of February 29, 2020

- that they have retained the same number of employees as of April 30, 2020, or as of May 31, 2020, compared to February 29, 2020, except for those employees whose employment contracts have expired or who have mutually terminated their employment.

Business entities that meet all the above conditions for April or May 2020 can be paid part of the minimum monthly net salary per employee, as follows:
up to 50 percent of the minimum monthly net salary (in FBiH) for entities with a turnover drop of 40-70 percent, and up to 100 percent of the minimum monthly net salary (in FBiH) for entities with a turnover drop of more than 70 percent.

This ordinance does not cover public enterprises, public institutions, public authorities, administrative bodies, administrative organizations, local self-government bodies and units, banks and other financial organizations, entities engaged in gambling and betting, associations, and natural persons who independently perform registered business activities and who, in accordance with income tax regulations, pay income tax on that basis according to a lump-sum determined amount.

The Government of Sarajevo Canton will determine the amount of the part of the minimum monthly net salary by a separate act, and the Ministry of Economy will publish a list of business entities that, after the procedure is completed, meet the conditions, as well as those entities that do not meet the conditions.