Minimum wage is the lowest legally permitted monthly (or hourly) amount that an employer may pay a full-time employee for work under normal conditions.
The minimum wage is established by the Government each calendar year by decree, and its adoption is marked by tripartite negotiations between the Government, trade unions (requesting a higher minimum wage), and employers' associations (requesting a lower wage to preserve jobs in labor-intensive industries such as textile, manufacturing, etc.).
By decision of the FBiH Government, the minimum net salary for 2026 is 1,027 KM. The gross amount corresponding to this net salary is approximately 1,605.48 KM. The calculation is based on the rise in consumer prices and the real growth of GDP in the Federation.
In Republika Srpska, the minimum wage is graded according to professional qualifications. The basic minimum (unskilled workers) is 1,000 KM net, while for workers with higher education, the amount reaches up to 1,450 KM net (2,245.90 KM gross).
| Grade of qualification | Net Amount | Gross Amount |
|---|---|---|
| Unskilled (No high school) | 1.000,00 KM | 1.476,23 KM |
| Secondary School (3-year) | 1.050,00 KM | 1.558,19 KM |
| Secondary School (4-year) | 1.100,00 KM | 1.672,13 KM |
| Higher Education | 1.450,00 KM | 2.245,90 KM |
Basic salary additions (such as overtime work, night work, and Sunday work) must not be included in the minimum wage amount itself. If an employee on minimum wage works overtime or on Sundays, that work must be paid on top of the minimum established amount (as an addition for difficult working conditions).