Institute for Youth Development KULT Supports FBiH Government Initiative for Subventions for Employment of Youth without Working Experience and Self-Employment

As a part of the “BH Business Site” initiative, the Institute for Youth Development KULT vehemently supports the initiative of FBiH Government for subventions for youth without working experience and self-employment, and all similar initiatives that aim to increase the number of employed youth and, finally, to improve the position of youth in our country.

The Public Call for Requests for First-Employment Subventions and Self-Employment was published today in accordance with the Provision on Employment Incentives that the FBiH Government enacted in the end of 2015. This Provision is one of the measures of the Action Plan for realization of the reformation agenda of the Federation of BiH. In this manner the FBiH Government is trying to incite employment with economic entities, along with entrepreneurial activity in mostly youth, and contribute to resolving the problem of unemployment, the gravity of which reflects in the number of over half a million unemployed in our country.

The measure projects employment of around 7 to 8 thousand persons by employing youth without or with one year of working experience and inciting self-employment of youth. It is a total amount of 50 million BAM for subventions, i.e. the highest amount allocated so far for employment and self-employment incentives.

It is expected that the measure will have good results, considering that the subvention will be awarded for first year of working experience of an unemployed person, with the obligation of the employer to keep the newly employed for the following year with no subvention, i.e. with the obligation to pay the employee’s salary and contributions. Thus the employee is given an opportunity to acquire working experience and also, through hard work and effort, to create an opportunity to extend his employment.

What differentiates this measure in comparison to public calls of employment incentives of the Federal Employment Institute from the previous years is that the fund users are employers from areas of production activities, and not from activities in the areas of trade, catering and tourism or the gambling industry, nor public firms and institutions. 

The employer may employ unemployed persons aged from 15 to 30 without working experience in the field of occupation for which they were educated or with one year of working experience. The users of funds for self-employment are unemployed persons aged from 18 and over that have registered a society with limited liability or a craft after the Provision was enacted. The subvention is awarded to the employer on behalf of refunding obligations based on contributions for the lowest salary in FBiH, the lowest salary in FBiH and income taxes of the newly employed or self-employed.

The Institute for Youth Development KULT supports this measure as a good first step towards creating and realizing long-term youth employment measures. In the future, the Institute will advocate the enactment of the Law on Emplyoment Incentives in FBiH on a similar principle, and all based on the Law that the neighboring Croatia enacted in 2012. 

The application is submitted by filing a request on the web-portal of the Federal Employment Institute at After applying electronically, the printed form of the request with the additional documentation stated in the form of the request is to be delivered to the authorized cantonal employment service personally or via mail. The Call will remain open until the funds are spent.



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