The average monthly net salary paid to employees in the Federation of Bosnia and Herzegovina reached 1,757 BAM in July 2026, according to newly released figures from the Federal Bureau of Statistics. The latest data show that wages continued to increase during the summer, with the average net salary rising by 2.5% compared with June and by 7.9% compared with July 2025. After adjusting for price changes, the real increase was 2.7% month on month and 4.4% year on year.
The July figures provide a snapshot of how earnings are developing across the Federation’s labor market. At the same time, the statistics show substantial differences between industries, with employees in public administration, information and communications, and health and social protection recording some of the highest average salaries. Workers in accommodation and food services, construction, and wholesale and retail trade remained among those with the lowest average monthly earnings.
Average Net Salary Reaches 1,757 BAM
Public administration and defense, together with mandatory social insurance, recorded the highest average net salary in July at 2,419 BAM. The information and communications sector followed closely at 2,385 BAM, while health and social protection recorded an average of 2,369 BAM. These differences underline the significant variation in pay depending on the type of work and economic activity.
At the other end of the scale, employees in accommodation and food services received an average net salary of 1,141 BAM. Construction recorded an average of 1,348 BAM, while wholesale and retail trade, including the repair of motor vehicles and motorcycles, stood at 1,375 BAM. The gap between the highest and lowest paying activities illustrates how national wage averages can conceal major differences in earnings across individual sectors.
The figures also show that the increase in salaries was not simply a result of changes in nominal amounts. Consumer prices in the Federation rose by 3.4% in July compared with the same month a year earlier, according to the Federal Bureau of Statistics. On a monthly basis, consumer prices actually declined by 0.2% in July. Against this background, the reported 4.4% real annual increase in average net wages indicates that average earnings grew faster than consumer prices over the year.
Gross salaries also continued to rise. The average monthly gross salary per employee reached 2,750 BAM in July, up 2.6% from June and 8.3% compared with July 2025. In real terms, the monthly increase was 2.8%, while the annual increase was 4.7%. The difference between gross and net pay reflects taxes and social contributions included in the total labor cost.
The July data follow a broader upward trend in average wages during 2026. The Federal Bureau of Statistics reported an average net salary of 1,714 BAM for June, meaning the July figure represented a 43 BAM increase in a single month. The statistics agency publishes monthly wage data by economic activity, allowing changes in pay to be tracked across different parts of the Federation’s economy.
Employment and Labor Market Show Mixed Picture
However, the wage increases have come alongside changes in employment. The total number of employed people in the Federation stood at 545,626 in July, which was 0.6% lower than in June. This means the number of registered employees fell even as average salaries increased during the same period. The monthly employment figure therefore provides important context when assessing the overall condition of the labor market.
Quarterly labor market data also point to changes in employment conditions. The Federal Bureau of Statistics reported in its second quarter 2026 Labour Force Survey that the number of employed people was 1.2% lower than in the same quarter of 2025, while the number of unemployed people fell by 6.3%. Because the Labour Force Survey and monthly administrative employment statistics use different methodologies, the figures should not be treated as identical measures, but together they provide additional information about developments in the labor market.
The combination of higher average wages and differences in employment highlights some of the challenges facing workers and employers in the Federation. Higher earnings can help households deal with living costs, but the national average does not represent what every employee earns. Sector, occupation, experience and location can all affect an individual’s salary, while the relatively large gap between industries remains an important feature of the labor market.
For businesses, wage growth also represents a significant part of operating costs. Gross salaries include contributions and other payments connected with employment, meaning increases in wages can affect the overall cost of employing workers. At the same time, stronger earnings can support household consumption and domestic demand, particularly when wage growth remains above inflation.
Overall, July 2026 brought another increase in average salaries across the Federation of Bosnia and Herzegovina. The average net salary reached 1,757 BAM, while the average gross wage rose to 2,750 BAM, with both measures recording annual real growth. The data also reveal a mixed labor market picture, with salaries increasing while the number of employed people declined slightly from June. The coming months will show whether wage growth continues and whether employment stabilizes, making future statistics important for understanding the broader direction of the Federation’s economy.
