Federation of Bosnia and Herzegovina unveils major economic and labor reforms

At the closing panel "Where we are and where we want to be?" of the 25th Revicon International Symposium in Neum, Premier Nermin Nikšić and federal ministers Adnan Delić and Vedran Lakić outlined the Federation of Bosnia and Herzegovina’s reform agenda. They reported that average wages rose from 1,114 KM in 2022 to a projected 1,594 KM in 2025, with the net average already near 1,700 KM, and that total salary payouts increased from 6.3 billion KM to over 9 billion KM. The government highlighted a reduction of public debt from about 24 % to roughly 18 % of GDP and announced the adoption and implementation of a fiscalisation law that will enable further cuts to employer contributions.

The reform package also includes the most comprehensive overhaul of the labour market in decades. New legislation simplifies the employment of foreign workers, introduces a mediation law, and launches a new Labour Act aligned with 15 EU directives. The act recognises modern work arrangements such as remote and decentralized work and aims to bring domestic regulation in line with European standards. Officials emphasized that the Federation now has one of the lowest public‑debt ratios in Europe relative to GDP.