Federation of Bosnia and Herzegovina raises minimum and guaranteed pensions in July

The Federal Ministry of Labour and Social Policy in the Federation of Bosnia and Herzegovina announced official pension figures for July. The lowest pension is set to increase to about 706 KM, while the guaranteed pension for recipients with 40 or more years of service will rise to roughly 892 KM. For the first time, the average self‑employed pension is expected to exceed the psychological threshold of 900 KM. The adjustments represent a 5.6‑6.1 % increase and follow a new law that mandates biannual pension indexing from 1 January and 1 July each year, using a blended formula of consumer‑price‑index and gross‑wage growth to ensure the most favorable outcome for retirees.

The ministry also projected that, if current wage and employment trends continue, the minimum pension could reach or surpass 800 KM by the next year. This outlook underscores the importance of wage growth and employment levels for the long‑term sustainability of the pension fund.