The Ministry of Labor and Social Policy of the Federation of Bosnia and Herzegovina led by Minister Adnan Delić, prepared a proposal to Amendment to the Law on Pension / Pension and Disability Insurance (PIO), and the amendments are envisaged by the shortened procedure.
The aim of the Ministry is to adopt these amendments in the FBiH Parliament by the end of this year. If the parliamentarians accept them, significant changes in the conditions for retiring and in the manner of harmonization of pensions / pensions in this entity will be followed by parliamentarians.
Fee for physical disability
The first change refers to paragraph 4. Article 67, which is currently read:
“The basis of cash benefits for physical disability is the lowest amount of pension determined in accordance with this Law.”
Suggested Modification reads:
“The basis for cash fee for physical disability is the lowest amount of pension paid in December 2024. in accordance with all associated increases on the day of exercising the right, and further aligned under Article 79. Of this Law.”
Matching pensions / pensions
Article 79 The Law currently envisages that pensions are harmonized once a year, 15. April, at the rate of 50% growth of consumer prices and 50% of the FBiH GDP growth in the previous year. The highest pensions do not harmonize until the lowest pension does not reach a fifth most.
The proposed changes envisage two complications per year – 1. January and 1. July, starting from 1 January 2026. Years. The harmonization will be performed officially, without making special solutions, based on the data of the Federal Bureau of Statistics, as follows:
If the rate of change in the consumer price index is higher or equal to the change rate of gross salary compliance is performed at the rate: 60% of the cost of consumer prices + 40% change gross salary.
If the rate of changes in consumer prices is less than the change of gross salary →
The harmonization is performed at the rate: 40% of the changes in consumer prices + 60% change of gross salary.
The calculation will be used absolute values of changes rate.
In case the sum of these rates leads to negative harmonization, pensions will not be adjusted, and pensions realized in the year of harmonization are not subject to correction in that same year.
As pensions will be adjusted in the future twice a year, the deletion of Article 80 is proposed. Related to extraordinary harmonization (which is now possible once a year).
Lowest and guaranteed pensions
Suggested Amendments to Article 81. They refer to the lowest and guaranteed retirement.
Currently, users who are less than the lowest prescribed age, the lowest pension is paid. According to amendments, the lowest age will depend on the length of the pension experience, and will amount to the percentage of the average pension paid in December of the previous year, as follows:
15-20 years of experience → at least 60% of average pension
20-25 years of experience → at least 65%
25-30 years of experience → at least 70%
30-35 years of experience → at least 75%
35-40 years of experience → at least 85%
40 years or older Snap → at least 95% of the average pension from December previous year.
So, the lowest pension will no longer be the same for everything, but will depend on the age of the experience.
The guaranteed retirement / pension will have the right to get people with 40 years of experience and more, if the pensions are calculated from the guaranteed amount. The guaranteed pension will be equal to the average independent retirement paid in December, aligned for the associated increases.
Family and disabled pensions
Valid law provides:
- 70% of the basis for one family member
- 80% for two members
- 90% for three members
- 100% for four and more family members.
According to the new proposal, family and disability pensions cannot be lower than 90% of the average pension paid in December last year.
The highest pension will remain unchanged, and will amount to five highest pensions paid in December 2024. years, writes Focus.
