The pension system of the Federation of Bosnia and Herzegovina faces serious challenges – even two pensioners come to each newly employed. This clearly show the latest data, which economic experts assess as alarming.
According to the information of the Tax Administration, in June this year, pensions received 458,322 pensioners, while the number of employees amounted to about 545,000. Compared to the previous year, the number of employees in the Federation decreased by more than four thousand, which further deepens execution problems, writes BHRT.
The question of survival
Deputy Chairman of the Steering Board of the Federation of the Association of the FBiH Pensioner, Haso Halilović, warns that the situation is extremely serious. The main causes of problems are low employment rate, insufficient contribution collection and outdated legal framework.
“A stable pension fund can only be built on the basis of a stable labor market. And that means more employees, regular payment of contributions and adaptation to the legislation to modern needs,” Halilović points out.
No new jobs have no new jobs
Economist Igor Gavran notes that it is difficult to expect an increase in employment without larger domestic and foreign investment. He emphasizes that the stable political situation is a prerequisite for attracting investors, and thus the creation of new jobs.
“The government must create a stimulating business environment – reduce labor costs, relieve taxes and contributions, and encourage domestic companies to expand,” Gavran said.
Positive examples such as the municipality of Vareš and Orašje, where the growth of employment and fiscal traffic is recorded, showing that progress is not impossible due to investments.
What do lawmakers say?
Soon about the situation in the draft system, it will also be discussed at the session of the Parliament of the FBiH Parliament. From the Federal Ministry of Labor and Social Policy, they say that the views will be presented after the parliamentary debate. The representative of SBiH Admir Čavalić recalls that this disbalance – two pensioners in one worker – present since 2018. years, and to endanger the stability of the entire system.
Experts also propose long-term measures to preserve the pension system. Among them are: better collection of contributions, reforming laws, but also introducing the so-called Second and third pillars of insurance – a model that would include additional savings of citizens and diversifying funding sources, including indirect taxes, transmits Radio Sarajevo.
For dignified pensions and a stable system, all – more jobs are needed, safer working relations, and more powerful and efficient economic policy. Without that, the sustainability of the pension system remains under a great sign of the question.
