In Official Gazette of the Federation of Bosnia and Herzegovina No. 100/25, several changes were published that will enter into force in 2026. Below we present a concise and practical overview of the most important news.

The lowest net salary in FBiH for 2026
 By the decision of the FBiH Government, the lowest net salary for 2026 was determined in the amount of 1,027.00 KM net.

This amount is valid for the period 01.01.–31.12.2026. and represents the basis for calculating the minimum wage for employees.

DESCRIPTION	EXAMPLE
Personal deduction coefficient	1
Gross salary	1.605,48
Contributions from salary	497,70
Gross - contributions	1.107,78
Personal deduction	300,00
Taxable basis	807,78
Tax	80,78
Net salary	1.027,00

The total gross salary cost amounts to KM 1,685.75.

Basis for calculating the contributions of certain taxpayers for the year 2026
 

For entrepreneurs based on self-employment from Article 12, paragraph 2, 3 and 5 of the Law on Income Tax ("Official Gazette of the Federation of Bosnia and Herzegovina", No. 10/08, 9/10, 44/11, 7/13 and 65/13) which determine income based on business books in accordance with Article 19 of the same Law, the monthly basis for calculating contributions is:

– 2,710.00 KM – for free professions,

– 1,602.00 KM – for self-employed trade and related activities,

– 715.00 KM – for independent activity in agriculture and forestry,

– 715.00 KM – for the independent activity of an individual trader.

For self-employed entrepreneurs from Article 12, Paragraph 1 of the Income Tax Act, whose income is determined and paid in a lump sum in accordance with Article 31 of the same Act, the monthly basis for calculating contributions is:

– 1,355.00 KM – for self-employed trade and related activities,

– 616.00 KM – for low-accumulative activities of traditional guild crafts,

– 616.00 KM – for independent activity in agriculture and forestry,

– 616.00 KM – for the independent activity of taxi transport,

– 715.00 KM – for the independent activity of an individual trader.

For contributors referred to in Article 6, point 10 of the Law on Contributions, the monthly basis for calculating contributions is 739.00 KM.

The average salary in the period I-IX 2025 is 2,464.00 KM.

Increasing the daily allowance for official trips to Bosnia and Herzegovina

With the amendment to the Regulation on Reimbursement of Business Travel Expenses, the non-taxable daily allowance for business trips in BiH was increased from 25 KM to 45 KM.

This regulation shall enter into force on the day following its publication in the “Official Gazette of the Federation of BiH”. and gives employers greater flexibility in covering the real costs of business travel.

Rules on physical cross-border cash transfers

The new Decision on Physical Cash Transfers stipulates:

• Mandatory declaration of cash of 10,000 EUR or more when crossing the BiH border
• Transfer of an amount greater than EUR 10,000 is possible with the approval of the Federal Ministry of Finance
• Residents can withdraw cash for:
  • official trip (on the basis of a travel order),
  • payment for the import of goods and services (up to EUR 3,000 without special approval)

Due to changes that have a direct impact on payroll calculations, travel orders and financial movements, we recommend that employers and responsible persons timely alignment of internal procedures and documentation. If you need help implementing these changes in practice, we are at your disposal.

Markarth Team