Minimum wage for 2025 - Your guide to the new rules and calculations
- June 12, 2025
- Posted by: admin
- Category: Blog
In the “Official Gazette of the Federation of Bosnia and Herzegovina”, No. 104/24, dated 31.12.2024, the Decision on the Minimum Wage for 2025 was published. According to the decision, the minimum wage for the period from 1 January to 31 December 2025 was set at a net amount of 1,000.00 KM. Compared to 2024, this represents an increase in the minimum wage of 381.00 KM.
Regardless of whether the employee works full-time (8 hours a day) or part-time (2, 4, 6 hours a day), the base for calculating contributions and taxes cannot be less than the prescribed minimum wage. In cases of part-time work, the net compensation can be agreed in proportion to the time spent on work.
Example: A worker who is registered part-time (4 hours a day or 20 hours a week) is entitled to a net salary of 500.00 KM, because he spends 50% less time at work compared to a full-time worker. According to current regulations, contributions are calculated on the full amount of the minimum net salary of 1,000.00 KM, regardless of the fact that the worker receives a salary commensurate with the time spent at work.
Gross salary and tax card
The prescribed amount of the lowest salary of 1,000 KM must be converted into a gross amount. The gross salary specified in the employment contract for 2025 is KM 1,562.00, for workers with the basic deduction coefficient.
The Regulation does not regulate the method of determining the amount of the minimum wage when an employee does not have a personal deduction allowance. The Labor Inspectorate will check in the field whether the employee has received less than 1,000.00 KM in his account. Employers who employ workers who have not submitted a tax card (i.e. whose personal deduction is 0.00 KM) must also pay such persons 1,000.00 KM. In that case, the minimum (gross) wage is 1,610.30 KM and not 1,562.00 KM, and the employer's costs are higher in this case.
See below an example of the calculation for both versions:
For any additional questions or clarifications, the Markart team is at your disposal.