Pension System in Bosnia and Herzegovina
The pension system in Bosnia and Herzegovina is organised at entity level. The Federation of BiH and the Republika Srpska have separate pension and disability insurance systems and laws. There is no unified BiH state-level pension system.
Pension system in the Federation of BiH
In the Federation of BiH, the pension and disability insurance (PIO) contribution rate is 17% of gross salary (paid entirely by the employee). The old-age pension is earned at 65 years of age (men) and 62 years (women, with an upward trend) with a minimum of 20 years of insurance. The pension amount depends on the length of service and the level of contributions paid. Pillar II (individual capital savings) is not mandatory in the FBiH.
Pension system in the Republika Srpska
In the Republika Srpska, the PIO contribution rate is 18% of gross salary. The old-age pension is earned at 65 years for men and 60 years for women (with age limit reforms). The minimum service required for a full pension is 40 years. The RS PIO Fund manages the collected funds. Pillar II is not mandatory, but voluntary pension insurance exists.
Voluntary pension insurance in BiH
Both the FBiH and RS offer voluntary pension insurance (Pillar III). Contributions to voluntary pension funds may be tax-advantageous depending on cantonal/entity regulations. Voluntary pension funds in BiH are regulated by investment fund laws and specific regulations. Diaspora members who worked abroad may be entitled to pension rights in BiH under international social security agreements.
Frequently Asked Questions
What happens to my pension if I worked in both the FBiH and the RS?
Pension insurance periods from both entities are combined when determining eligibility. However, the pension is paid by each entity proportional to the insurance period accrued there. This is governed by inter-entity agreements.
Can I count on a pension if I worked abroad?
Yes, if there is an international social security agreement between BiH and the country where you worked. BiH has signed agreements with a number of European and other countries, enabling the aggregation of pension periods earned abroad.
Is it possible to voluntarily contribute to a pension fund in BiH?
Yes. Both entities have voluntary pension funds (Pillar III). Contributions are voluntary, and tax benefits vary between the FBiH and the RS. Consultation with a fund company or tax advisor is recommended.