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Federation of Bosnia and Herzegovina Amends and Extends Reduced Social Security Contribution Basis for Labor-Intensive Industries

02 February 2023

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Approved Changes

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Bosnia and Herzegovina

On 27 January 2023, the parliament of the Federation of Bosnia and Herzegovina (FBiH) reportedly approved amendments to the law on social security contributions to amend and extend the reduced social security contributions basis for employees of labor-intensive industries, such as mining, textile, and leather industries. As amended, the reduced basis applies for employees whose salary is less than 85% of the average net salary in the FBiH (up from 60%) and is equal to 35% of the average monthly gross salary paid from January to September in the previous year (up from 29%). Previously scheduled to expire at the...