European Andersen professionals from over 20 different jurisdictions have published the latest Employment Insights Newsletter, featuring the main updates in the field of Employment and Labor Law.<\/p>\n
Magdalena Patryas, Partner at Andersen Poland, interviewed Sanja \u0110uki\u0107, Senior Partner at Andersen Bosnia and Herzegovina, to analyze the most significant labor law updates, including the minimum wage increases<\/strong> introduced in the country and their direct consequences on the labor market.<\/p>\n In 2025, a significant increase was introduced: on the one hand, the Federation of Bosnia and Herzegovina raised the minimum wage from BAM 620 (approximately \u20ac320) to BAM 1,000 (approximately \u20ac510); on the other hand, Republika Srpska replaced the previous universal minimum wage of BAM 900 net (approximately \u20ac460) with a differentiated minimum wage<\/strong> system based on the level of education, following a four-tier model linked to the qualifications required for the position.<\/p>\n The aim of this initiative was to curb worker emigration<\/strong> and improve living standards. Trade unions viewed the measure as a useful tool to reduce undeclared work and unreported wages. However, employers expressed concerns about the increased cost of labor, particularly due to the impact of social security and health contributions.<\/p>\n The Federation of Bosnia and Herzegovina therefore sought to support employers by reducing the contribution burden from 10.5% to 5%, while Republika Srpska did not introduce similar relief measures.<\/p>\n The new measures led to an increase in employment<\/strong> in the Federation, but to a decline in employment in Republika Srpska, particularly in the industrial and mining sectors.<\/p>\n Unfortunately, the minimum wage policy has had only a partial effect<\/strong>: many employers have modified job descriptions, lowering the required level of education.<\/p>\n The government has already announced a further increase in the minimum wage for 2026, which will raise the net minimum wage to BAM 1,100 (approximately \u20ac560) for positions requiring a high school diploma and to BAM 1,400 (approximately \u20ac715) for those requiring a university degree.<\/p>\n At the same time, new legislation is being prepared in the Federation of Bosnia and Herzegovina to better protect workers, such as promoting open-ended contracts,<\/strong> counting breaks as working time, and increasing paid leave days. Overall, the new rules move toward greater employee protection, despite the country\u2019s challenging economic context.<\/p>\n You can find the full contribution on page 6 of the newsletter<\/a>.<\/p>\nEMPLOYMENT LAW UPDATES IN ITALY<\/strong><\/h2>\n