Republika Srpska pension increase announced for January

Mladen Milić, director of the PIO Fund, has announced a regular pension increase scheduled for January next year in Republika Srpska. Based on current indicators regarding the rise in living costs and average salaries during the first eight months of this year, the adjustment is estimated to be between 7.5% and 8%.

If these growth levels persist, the monthly expenditure for pensions is expected to reach 200 million KM, totaling 2.4 billion KM gross annually. Currently, the average pension in the region is 726 KM, though those with 40 years of service receive an average of nearly 1,100 KM.

Milić noted that regular annual adjustments will continue from January 2027, calculated based on the previous year's inflation and wage growth. He also addressed the low average pension levels, attributing them in part to historical practices where many workers were officially registered at minimum wages.