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If there is an amendment to the FBiH Pio Law, here is how much the minimum pension will be

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If there is an amendment to the FBiH Pio Law, here is how much the minimum pension will be

The first harmonization of pensions in the Federation of BiH in new amendments to the FBiH Pio, which should be adopted in the FBiH Government, and then confirmed by the FBiH Parliament by the end of the year. January 2026. years.

Bosnainfo Exclusively brings analysis as pensions would increase according to the new provisions if for example they have applied since the next month.

Namely, the novelty amend the Law on PIO FBiH is that it has changed a way, which should significantly affect the higher percentage increase in pensions during their harmonization.

This means that the harmonization of pensions will no longer be performed on the basis of the consumer price index and as it was by the current Law on PIO FBiH growth rates of gross domestic product.

Instead, the ratio of the growth of average salary and inflation was introduced, with the fact that the percentage of pensions will be performed in favorable criteria in the ratio of 60:40.

So far, it was the ratio of 50:50, which has significantly reduced the growth of pensions with the application of the GDP system, in relation to that it would be under the new system.

By applying the new model (60:40) more favorable for retirees according to current current indicators means that minimum pensions in the FBiH salary and inflation growth increased by 11.8 percent.

Recalculated in money This would mean that the minimum pension in new harmonization (with a basis of 599.28 KM) increased by as much as 71,90 KM.

At the same time, the application of the old model of the sum of consumer prices (inflation) and GDP would mean that in a new alignment to be done, for example, the next month increased by pensions by only 3.75 percent.

This would be 24 KM, as far as they have so far amounted to increasing pensions during the annual alignment.

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