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The law changes in order to reduce the FBiH contribution rate: how relieved of employers will employers?

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The law changes in order to reduce the FBiH contribution rate: how relieved of employers will employers?

Proposal of the Law on Amendments to the Law on Contributions, which was determined by the Government of the Federation of BiH, was announced as a parliamentary center of the Parliament of the Federation of BiH for a session convened at the beginning of next month, more precisely 2. April. April. – The proposed legal solution reduces the collective rate of contributions by 13.25 percent, ie for five and a half index points, ie from 41.5 percent to 36 percent, writes Večernji list BiH.

Namely, the retirement and disability insurance rate is reduced in the Federation of BiH for three and a half index points, as well as the employer’s health insurance rate for the two index points – it is stated in the explanation of legal amendments from the Government of the Federation of BiH. BiH Government further explain that amendments to the Law on Contributions are part of the set of fiscal measures, which plans to implement the Government of the Federation of BiH on the basis of their work programs, which is especially true for new income laws and income tax. The proposer as the reasons for the adoption of this Law states the release of the economy and reducing the costs of wages, which will have a higher cost of salaries for employees in accordance with the amount of the amount of 1000 KM in the Federation of BiH. At the same time, the proposed amendments are entirely implemented by the Judgment of the Constitutional Court of the Federation of BiH from 21. March 2023. years.

It was proposed that the law enters into force on the day after its publication in the Official Gazette of the Federation of BiH and that its application starts from 1. July this year.

The proposal of this Law was also adopted at the Session of the Federation of BiH on the same day in the last month, when it was approved by the entity government and when it was announced to be sent to the Federal Parliament. The Government of the Federation of BiH proposed that the parliament considered him in a shortened procedure.

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