Prepared by Dawn Rehm, Jun Ma, and Jenny Ligthart.
The pre-war economic slowdown had already placed a severe strain on these programs.
Gupta, Sanjeev, Christian Schiller, and Henry Ma, 1999, “Privatization, Social Impact, and Social Safety Nets,” IMF Working Papers WP/99/68.
In Republika Srpska, an additional fund provides protection for children.
The age for early retirement for men (women) was increased from 55 (50) to 60 (55) with 35 (30) years of pension contributions, with a modest reduction in benefit entitlements. After 2005, this option is no longer available.
Benefit entitlements range between 130 percent and 450 percent of the pension base, depending on the level of education. The pension base ranges between 45 and 85 percent of the prevailing minimum wage, depending on years of contributions. The pension base is the minimum wage prevailing in the month benefits begin, adjusted for increases in the average wage.
Wage compensation for temporary disability is to be provided by the employer for disabilities of up to 120 days; longer periods of temporary disability are to be financed from the Health Insurance Fund.
For example, the Health Insurance Fund in the RS reported arrears of KM 5 million at end-1998.
For the Federation, unemployment benefits for periods greater than six months are available only to those who have been continuously employed for five years or more.
The continued existence of parallel institutions in the Federation is reflected in benefits for military invalids as well. Amounts included in the budget are divided on a 70–30 basis between the Bosniac– and Croat-majority areas. Extrabudgetary support to the Federation from Croatia—estimated at KM 164 million for 1999—is allocated by the Ministry of Defense between army units previously associated with the Republic of Herceg-Bosna (HVO), and the associated military invalids and surviving families.
Only 10 monthly pension payments were made in 1998.
Depending on the degree of impairment, disability benefits range from 20–160 percent of the average wage from the previous December. The gap between disability pensions granted under the Law on the Rights of Soldiers and their Families and entitlements provided under the Law on Pension and Invalid Insurance is likely to be considerably wider. Gross military wages are estimated to be at least double average wages in the Federation. Moreover, contributions for health and pension insurance account for only 11 percent of net salary, compared with 24 percent of gross wages for other individuals. Moreover, disability pensions under the Law on Pension and Invalid Insurance are linked to average pension levels from the previous year.
The law does prescribe, however, that the following sources of income are not to be taken into account: disability pay, monetary compensation received in return for care of another person; stipends for children; and scholarships.
The law covers civilian war victims with a disability of 60 percent or more; the law extends coverage, however, to those who qualified for support prior to the enactment of this law.
These percentages are as follows: 25 percent for one family member, increased by 50 percent for each additional family member; and 80 percent for children of civilian war victims without parents.
In Republika Srpska, maternity benefits and children’s allowances are covered by a separate social insurance fund supported by wage and salary contributions. The program covers salary compensation during maternity leave, maternity allowances for unemployed mothers, and a child allowance. The average number of beneficiaries in Republika Srpska declined from 104,000 in 1997 to about 88,715 during 1998 following amendments to the Law on Child Welfare aimed at improving the quality of benefits for those most in need. During the first six months of 1999, there were an estimated 70,000 beneficiaries. Average benefits per year are estimated to be KM 80–100 in each of the three years. By June 1999, the Fund was current in all benefit entitlements through April 1999.