The Government of the FBiH adopted a decision to increase the amount of the lowest pension by 3.1 %, starting with pensions for the month of May 2018. The Federal Pension and Disability Insurance Institute will be responsible for the implementation of this decision.
As stated, the financial situation in this institute is at a satisfactory level. Pension payments are conducted regularly and with a lower amount of used loans. Moreover, the accumulated deficit in the first four months of 2018 was decreased by additional 25 million BAM in comparison to the end of 2017.
The largest impact on the favourable financial situation in the Federal Pension and Disability Insurance Institute was the increase of revenues from contribution for the first four months of the year of 2018 by 7.6 % or by 43 million BAM.
In accordance with Article 81 of the Law on PIO / MIO, there is a possibility for extraordinary compliance of the lowest pension up to the growth rate of the real GDP. Based on the announcement of the Federal Bureau of Statistics on March 30, 2018, the growth of real GDP for the year of 2017 was estimated at 3.1 %.
Financial effects in case of extraordinary compliance of the lowest pensions by 3.1 % will amount to a tota of 14.870.856 BAM in the year of 2018.