The Federal Institute for Pension and Disability Insurance has officially announced that the advance pension increase for July will amount to 3.5 percent. The decision on the adjustment of advance pensions was made by the Management Board of the Institute, and it applies from July 1, 2026.
The increase will be calculated on the amount of the pension paid for June 2026 and applies to all beneficiaries who have acquired the right to a pension by that date. The exception is pensions earned during 2026, which will not be subject to this adjustment. However, the lowest and guaranteed pensions realized this year will be matched on an advance basis at the same rate of 3.5 percent.
As announced by the Federal Institute of PIO/MIO, the adjustment rate was determined in accordance with the Law on Pension and Disability Insurance. The formula predicts that 60 percent of the increase in the average gross salary and 40 percent of the increase in the consumer price index are taken into account.
According to the latest data from the Federal Bureau of Statistics, the growth of the average gross salary was 3.7 percent, while the growth of the consumer price index (CPI) was 3.2 percent. Applying the legal formula resulted in a rate of advance adjustment of 3.5 percent.
The Institute states that earlier estimates indicated a slightly higher price increase, but the final statistical data showed a lower inflation rate, primarily due to the drop in oil prices, as well as other products and services on the domestic and international market.
The final rate of regular adjustment of pensions will be determined after the publication of all official statistical data for the first half of 2026. If it is higher than the currently determined 3.5 percent, the difference will be calculated and paid retroactively to pensioners, starting with the July 2026 pension.
The decision will enter into force after the Government of the Federation of Bosnia and Herzegovina passes a conclusion giving its consent to the decision of the Management Board of the Federal Institute of PIO/MIO, reports RTV Slon.
