The Government of the Federation of Bosnia and Herzegovina adopted a decree amending the regulation on the reimbursement of expenses for official travel, which increased the daily allowance for travel in the country from the previous 25 KM to 45 KM. This regulation will also have an impact on the private sector.
The regulation on the compensation of expenses for official trips defines the compensations that employees of public institutions receive for going to the field. In this sense, there are allowances for food, accommodation, transport costs and others.
This act otherwise prescribes the amount of fees for official trips in Bosnia and Herzegovina, as well as for trips outside the country. It also regulates the method of calculating the daily wage in relation to the number of hours spent on the field and the like.
The Government of FBiH has now amended Article 5 of the said Regulation, which refers to per diems (food allowances).
“Within the regulation on reimbursements of expenses for official trips, it is stipulated that in Article 5, paragraph 2) number 25 is replaced by number 45. This change refers to the amount or designation of a particular fee within the existing regulation on official trips and is aimed at harmonizing with the current regulations,” according to the Official Gazette of the FBiH.
This is also important for per diems for business trips in the private sector, given that employers can provide tax-free per diems only up to the amount of compensation applicable to civil servants.
More precisely, until now the employer could give a daily allowance for business trips higher than 25 KM only if he would pay tax on it, which amounts to approximately 40 percent. Now that limit has been increased to 45 KM, which will make it easier for transporters and other companies whose core activity implies that workers are often in the field, he writes. Klix.
