The Federal Ministry of Labor and Social Policy launched an e-calculator for calculating pensions, available on the official website the website of the Ministry.
This new service, available for the first time in our area, allows citizens to easily calculate the amount of their future pension, the Ministry announced.
How is the pension calculated?
According to the point system in the Federation of Bosnia and Herzegovina, the pension is calculated based on the years of service and the amount of reported wages. For example, a worker who had a reported average salary of 1,500 KM during his 40 years of service would earn one point per year, which means that he would collect a total of 40 points by the time he retires. When this is multiplied by the valid point value for the year 2024 of 20.35 KM, such a worker can expect a pension of 814 KM per month. However, if the contributions were paid on a lower amount of salary, the final pension would be significantly lower and vice versa, a higher than average salary means a higher pension.
For example, a salary of 3,000 KM, which is twice the average, means that you get two personal points for the year, and if all 40 years of work have two points, that’s a total of 80 points. When this is multiplied by the valid point value for 2024 of 20.35 KM, such a worker can expect a pension of 1,628 KM per month.
It is important to point out that in the above-mentioned way, each month, or day, is evaluated through the formula, and the personal realized salary is put into relation with the average salary to three decimal places, so that, for example, in one year the insured person can earn 1.73, then 2 , 67 and above, up to a maximum of five points for one year.
It is important to emphasize that this principle is automatically built into the e-calculator, so no prior knowledge or complicated procedures are required for its use.
How to use the e-calculator?
The e-calculator is easy to use and available to all citizens through the official website of the Federal Ministry of Labor and Social Policy. The usage process only takes a few minutes:
- Access the website of the Ministry and select the option “E-calculator for calculating pensions.”
- Enter the basic data, including years of service and annual salary amounts according to the records of the Social Insurance Institution of Social Security (can be downloaded from the list of insured persons issued by the Institute for Pension and Disability Insurance).
- The calculator automatically compares the entered data with average salaries in certain years and assigns the appropriate number of points for each year.
- The total number of points is calculated, which is multiplied by the legally prescribed point value for the current year.
- The estimated pension amount is displayed, which the user can use for further financial planning.
The Federal Ministry of Labor and Social Policy invites citizens to take care of their future today and use the e-calculator to calculate the pensions they can expect at the end of their working life.
