Number of pensioners in FBiH increased by 3,615 in four months, number of employed is falling: Government adds 40 million KM monthly for pensions

(Patria) - In the last four months alone (May-August), the number of pensioners in FBiH increased by 3,615, while the number of employed decreased by 203 people.

For the first seven months, the FBiH Tax Administration collected 1,756,540,939 KM in contributions for PIO/MIO. On average, about 290 million KM is needed monthly for pension payments. However, the numbers are clear. The FBiH Government has to provide additional funds from the FBiH Budget for pension payments for months. Approximately 250 million KM is available monthly from contributions, and the Government adds about 40 million KM.

To stabilize the situation, the trend of increasing number of pensioners should be accompanied by an increase in the number of employed, which is not the case in FBiH at the moment. If this trend continues, or if the number of employed starts to decrease for various reasons (retirement, emigration of the working population from BiH, company closures), there will be less money for pensions, and the Government will have to allocate more funds to maintain the liquidity of the Federal Pension and Disability Insurance Fund.

According to data from the FBiH Tax Administration, the number of employed in May was 548,183, while at the end of July it was 547,980, a decrease of 203 people.

In the same period, the number of pensioners increased. In May, 447,389 pensioners received pensions, and for August, 451,004 pensioners were paid.

This devastating statistic is one of the main reasons why the FBiH Government has not yet prepared and sent for procedure a set of fiscal laws that would reduce tax rates. The Government fears that a new payroll calculation system would result in significantly less money being paid into the budget, forcing the Government to add even more money for pensions and social benefits.

At the same time, the pressure from international organizations preparing reports on BiH is growing, stating that such a pension and social system is unsustainable, and that public administration must be reduced and reformed.