FBiH House of Peoples adopts law to cut contribution rate to 36%

Kraljevic emphasized that with this legislative solution, the aggregate contribution rate in the Federation of BiH will be reduced for the first time in nearly two decades—by 13.25%, or five and a half index points.

"Eppur si muove (and yet it moves)," Kraljevic concluded at the end of his address.

The House of Peoples of the Parliament of the Federation of Bosnia and Herzegovina adopted the bill almost unanimously. Once implemented, it will lower the aggregate contribution rate from the current 41.5% to 36%.

The bill is part of the broader fiscal reform launched by the FBiH Government, which began with the adoption of the 2025 Minimum Wage Decision, setting the lowest monthly salary at 1,000 Bosnian marks (approx. 510 EUR).

On that occasion, Deputy Prime Minister Kraljevic stressed that the increase in the minimum wage should not and would not be an isolated measure, but rather a part of a comprehensive strategy to reform the fiscal system. In that context, the Government’s decision should be viewed as part of a wider plan.

The adoption of the amendments to the Law on Contributions, along with the fact that another law from the set of fiscal legislation prepared by the FBiH Ministry of Finance – the Law on Fiscalization of Transactions in FBiH – is in its final stages of discussion, underscores the Government’s commitment to easing the burden on the economy and improving competitiveness.