FBiH Government issues a decision on the increase of pensions by 2.8 percent

FBiH Government issues a decision on the increase of pensions by 2.8 percent

SARAJEVO, July 29 (FENA) – The Government of the Federation of Bosnia and Herzegovina at its session today has tasked the Pension and Disability Insurance Institute to adjust all the pensions in the amount of 50 percent of the increase in consumer prices and 50 percent of the percentage of increase in the gross domestic product in the Federation of BiH in the previous year, in the amount of 2.8 percent, except for the pensions earned in the year in which the adjustment is made.

The Pension and Disability Institute was also told to adjust the value of the general pension point according to the percentage increase of the average gross salary in the entity in the previous year.

After applying this percentage of adjustment of 4.5 percent to the value of the general point of 14.5 KM from 2019, the calculated value of the general pension point for 2020 will amount to 15.15 KM.

The conclusion enters into force on August 1, 2020, and does not refer to the period of the declared state of natural or other disasters in the Federation of BiH.