This year, the federal budget, in addition to containing development projects, also brings important measures to support the most vulnerable population groups. Priorities include employment, monthly and one-time financial assistance, and the planned increase in pensions is particularly noteworthy.
More than 300 million KM have been set aside for this purpose, which opens up the possibility of increasing pensions and paying one-time benefits to pensioners.
According to unofficial information, as reported by Večernji list BiH, an increase in pensions is expected in April, and changes to the legal framework are also possible. These changes could enable the introduction of additional parameters in the calculation of pensions. Although official information is not yet available, this year’s budget foresees 337 million KM for regular payments and legal adjustment of pensions, with the aim that they follow the increase in the cost of living.
The standard of pensioners is a challenge for the Government
Prime Minister Nermin Nikšić, after the session of the Economic and Social Council, emphasized that the standard of pensioners is one of the key challenges for the Government. He confirmed that efforts will be made to find additional funds to increase pensions or pay one-time benefits. He also pointed out that the working group is working on amendments to the law on pension and disability insurance, and the results of their work will be known soon.
Pensions in the Federation of Bosnia and Herzegovina are adjusted on April 15 each year, based on the growth of consumer prices and gross domestic product from the previous year. Last year, the adjustment was 6.55%, and estimates for this year are still pending. Currently, the lowest pension is 573.53 KM, guaranteed 684.48 KM, average 724.64 KM, and the highest 2867.65 KM.
The increase of the minimum wage to 1000 KM, which was introduced by the FBiH Government, significantly contributes to the strengthening of the pension fund. Prime Minister Nikšić points out that the effects of this decision resulted in an increase in contributions of 468 million KM, of which 256 million are intended for pensions and improving the standards of pensioners.
The government also plans to allocate an additional 100 million KM for subsidizing contributions, which will be realized through the Employment Office, while 183 million KM will be directed to health insurance, and part of these funds will go to the Federation Solidarity Fund.
Although the official adjustment of pensions is expected in April, it is clear that this year’s budget aims to improve the lives of pensioners and strengthen their financial stability in the context of rising living costs.
Source: Focus
