The Government of the Federation of Bosnia and Herzegovina (FBiH) entity has approved a decision to increase the minimum wage for 2025 to 1,000 Bosnian marks (some €500), following consultations with the Economic and Social Council and a proposal from the FBiH Ministry of Finance.

The new minimum wage will be effective from January 1 to December 31, 2025. The decision, adopted during Monday's government session, takes effect immediately and will be published in the Official Gazette of the FBiH.

Under Article 6, Paragraph (1) of the Regulation on the Methodology for Calculating and Adjusting the Minimum Wage, the government is required to set the minimum wage for the upcoming calendar year by December 31 of the current year.

The minimum wage is determined either by adjusting the previous year’s figure according to Article 5 of the Regulation or by setting a higher amount. However, it cannot be lower than the amount established for the prior year.

For 2025, the government opted for a minimum wage higher than what would have been calculated through adjustments, as per Article 6, Paragraph (3) of the Regulation. The set amount of 1,000 marks (approx €500) represents a significant increase from the minimum wage of 619 marks, established for 2024.

This adjustment reflects the government's aim to improve living standards and address economic challenges within the Federation of Bosnia and Herzegovina.