The Government of the FBiH established the Proposal for the Budget of the Federation of BiH for 2026 in the total amount of 8,898,279,146 KM, which will be referred to the parliamentary procedure for adoption by urgent procedure. The budget of the Federation of BiH for the next year is higher than this year’s by 649 million KM.
It was explained that the main goal of the Budget of the Federation of Bosnia and Herzegovina for 2026 is the sustainable management of public finances, with responsible control of expenditures and provision of stable sources of financing. The budget is aimed at fulfilling obligations towards citizens and institutions, with a special focus on social protection, the health and pension system, a stable business environment, and preserving the functionality of public services.
Within the total subsidies to private companies and entrepreneurs, an amount of 23,227,134 KM is planned, which ensures the implementation of various economic policy measures aimed at stabilizing business and strengthening the economy’s resilience. For now, it is not yet known what these programs refer to, and according to Patrija’s information from the business community, the FBiH Government will not extend the two regulations that were applied during 2025 after the minimum wage increased from 619 to 1,000 KM in January.
In order to save jobs and reduce the pressure that employers had after the increase in costs, the Government adopted two decrees, namely the Decree on measures of financial assistance to low-accumulative activities in the Federation of Bosnia and Herzegovina with the aim of maintaining existing workplaces for the year 2025 and the Measures of financial assistance to private employers, trades and other independent activities in the FBiH, i.e. the refund of part of the contributions. For the refund of part of the contribution for 2025, the Government allocated 100 million KM.
However, it is evident from the budget proposal that this amount will be significantly reduced.
These two decrees will not be extended in 2026. The Government of the FBiH established a minimum wage of 1,027 KM for 2026.
At the last session of the Economic and Social Council for the territory of the FBiH, the Government of the FBiH announced the extension of the Decree on the payment of tax-free assistance by the employer during the year 2026. However, the monthly amount will be reduced from 400 to 250 or up to a maximum of 300 KM.
However, the decisions have not yet been published, neither on the minimum wage nor on the regulation.
In the Republic of Srpska, up to 2,500 KM tax-free
The President of the RS Chamber of Commerce, Goran Račić, said that today, December 24, it was agreed with the Prime Minister of the RS, Savo Minic, that the Government would pass a decree by which, starting next year, businessmen would be able to pay workers aid without fiscal burdens.
“At a time when we have large migrations, when workers are leaving, such a solution is necessary. There is something like that in the Federation of Bosnia and Herzegovina,” said Račić and added:
“And, it is about the fact that workers can be paid 2,000-2,500 KM tax-free annually,” he writes. Acts.
