Minimum pensions in the Federation of Bosnia and Herzegovina could reach the amount of about 700 KM from next year, according to the estimates of pensioners’ representatives who have been actively negotiating with the authorities for months on changes to the Law on PIO.
The proposed changes, which were prepared in cooperation with the FBiH Government, will soon be before the Parliament of the Federation.
Agreement on amendments to the Law on PIO
“On September 16, we had a meeting with the prime minister, his deputies and the minister, and we finally agreed on the text of the amendments to the law, which should be adopted in both houses of the Parliament by the end of this year and come into force on January 1, 2026.
With these changes, Article 79 will enable the growth of pensions in accordance with the growth of wages, as well as their regular adjustment twice a year – on January 1 and July 1.
Also, the protection of the previous growth of pensions is ensured, which means that their reduction cannot occur”, said Haso Halilović, president of the Union of Associations of Pensioners TK, reports RTV Slon.
A fairer system for new pensioners
According to representatives of pensioners, there will be no reduction for those who are already retired, but the amounts for new pensioners – with fewer years of service – could be somewhat lower. They believe that this is the only fair way to make the system sustainable.
“Until now, a person who has worked for 35 years has the lowest pension of 599 KM, and a person who has worked for 15 years has the same pension, and we concluded that this is not right.
According to the first calculations, the lowest pension for 15 years of service should be significantly lower. I can’t say for sure if that will be the case,” explained Nikola Banović, president of the Board of Directors of the Association of Pensioners of the City of Tuzla.
New pension supplement instead of extraordinary adjustment
One of the most important novelties brought about by the proposed changes to the law is the introduction of a pension supplement, which will be calculated according to years of service.
“We had problems with Article 80, which refers to the extraordinary adjustment of pensions. We asked for an increase, but the Government initially refused it. After long negotiations, we reached a compromise – instead of the existing Article 80, a pension supplement will be introduced that will be linked to the length of service.
A pensioner who has worked longer will receive a larger allowance, and a pensioner with less seniority will receive a smaller one. Some call it the 13th pension, but I wouldn’t call it that – it’s an allowance that should be paid out every December,” Halilović pointed out.
