Minimum Wage in FBiH 2026: Amount, Gross and Employer Cost

The minimum net wage in the Federation of BiH for 2026 is 1,027 BAM. We explain how the gross is calculated, the total employer cost, and what it means for your company.

What Is the Minimum Wage in FBiH in 2026

The minimum net wage in the Federation of Bosnia and Herzegovina for the period from 1 January to 31 December 2026 is 1,027 BAM. This is the amount the employee must receive in their bank account, and it is set by a decision of the Government of FBiH. Compared with 2025 (1,000 BAM net), this is an increase of about 2.7%.

In FBiH the minimum wage is set as a net amount. This means the employer must calculate a corresponding gross salary which, after all contributions and taxes, leaves the employee with at least 1,027 BAM in their bank account.

How the Minimum Wage Is Set

The minimum wage is adjusted according to a prescribed methodology: as the sum of 50% of consumer price growth and 50% of gross domestic product growth. This is why the amount changes every year, so employers must follow each new decision of the Government of FBiH and update their payroll immediately.

Gross Salary and Total Employer Cost

For the employee to receive 1,027 BAM net, the gross salary is approximately 1,600 BAM. On top of the gross salary the employer also pays employer contributions (5% from 1 July 2025), so the total employer cost is about 1,704 BAM per month per employee on the minimum wage.

A reminder of the rates in FBiH (2026):

Employee contributions (deducted from salary): pension 17% + health 12.5% + unemployment 1.5% = 31%
Personal income tax: 10% (with a personal allowance of 300 BAM per month)
Employer contributions (on salary): pension 2.5% + health 2% + unemployment 0.5% = 5%

For the detailed calculation procedure, see our guide to payroll in BiH 2026.

Comparison with Republika Srpska

In Republika Srpska the basic minimum net wage for 2026 is 1,000 BAM, but from 2026 RS is introducing tiers based on qualification level (up to 1,450 BAM net for higher education). Amounts and rules differ between the entities, so companies that employ staff in both entities need to keep their payroll separate.

What Employers Need to Know

Paying below the minimum wage is a breach of the Labour Law and exposes the employer to an inspection order and fines. In a retroactive inspection, an error can cover the whole year, with interest on the unpaid amounts. This is why every change to the minimum wage should be applied as soon as it comes into force.

How ENS d.o.o. Helps

At ENS d.o.o. we take over the entire payroll for your employees, track every change to the minimum wage and contribution rates, and file the MIP-1023 form on time. Call us on +387 61 158 271 or send an enquiry to info@ens.ba. The first consultation is free.