The Government of the Federation of Bosnia and Herzegovina has adopted a Decision on establishing the lowest salary for the period 01.01.2023 to 31.12.2023 in the net amount of 596 KM (approx. 300 EUR), which represents an increase of 9.85% compared to the lowest salary established for 2022.
In the decision, it is stated that the method of determining the minimum wage, the adjustment and the deadline for adjustment are prescribed by the Regulation on the methodology of calculation and adjustment of the minimum wage. According to this regulation, the adjustment is made on the 50% of the sum amount of the increase in consumer prices and 50% of the increase in the gross domestic product in the Federation for the period January to September, and according to the data of the Federal Bureau of Statistics.
In the second entity, the Government of the Republic of Srpska established the Proposal for the Law on the Termination of the Law on Special Republic Taxes, which abolishes the obligation to pay a special republic tax, which is payable by all business entities in the Republic of Srpska.
“The aim of abolishing the special republic tax is to relieve the burden on business entities and accelerate the growth of economic activity in the Republic of Srpska”, announced the Bureau of Public Relations of the Government of the Republic of Srpska.
With these measures, as of January 1, 2021, the republic tax was reduced by 30%, and from 2022 by 60% compared to 2020, while it is proposed to abolish it from 2023, after 30 years of application.
For additional information or assistance from our local advisors, please contact our Accountant/Payroll Specialist, Ms. Andrea Peulic, at our Eurofast office in Banja Luka, Bosnia at banjaluka@eurofast.eu
Andrea Peulic
Accountant & Payroll Assistant
Eurofast Banja Luka
banjaluka@eurofast.eu