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Federation of Bosnia and Herzegovina Cutting Employer Social Security Contribution Rates

27 February 2025

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Proposed Changes

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Bosnia and Herzegovina

The Government of the Federation of Bosnia and Herzegovina (FBiH) approved a draft law on 25 February 2025 that will cut the social security contribution rates for employers. This includes a reduction in the contribution rate for disability and pension insurance from 6.0% to 2.5% and a reduction in the contribution rate for health insurance from 4.0% to 2.0%, resulting in an overall reduction from 10.0% to 4.5%. Subject to approval in parliament, the contribution rate cuts are to apply from 1 July 2025.