* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Sarajevo
Currency

Bosnia-Herzegovina Convertible Marka (KM)

Timezone

CET (GMT +1)

Payroll
Monthly
Employment Cost

8% - 10%

Annual Leave

20 days

In-demand Specialties*
Software Development & It, Technical Support & Customer Care, English Language Teaching

The Ultimate Guide to Hiring Employees in Bosnia & Herzegovina

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Bosnia & Herzegovina-guide

Key Considerations Before Hiring In Bosnia & Herzegovina

Employing in Bosnia & Herzegovina requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Bosnia & Herzegovina with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Bosnia & Herzegovina quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

playroll-good-to-know

Fundamental Aspects of Employment in Bosnia & Herzegovina

Hiring in Bosnia and Herzegovina demands careful adherence to local regulations and practices. Key considerations for employment contracts include:

  • Written contracts
  • Currency and compensation terms
  • Benefits and protections
  • Regular working days and hours

Probationary Period in Bosnia & Herzegovina

In Bosnia and Herzegovina, probationary periods are not mandatory and are established through mutual agreement. However, these periods must not exceed six months in duration.

Working hours in Bosnia & Herzegovina

In Bosnia and Herzegovina, the standard workweek is limited to 40 hours over five days, from Monday to Friday.

Overtime in Bosnia & Herzegovina

In Bosnia and Herzegovina, overtime work exceeding the standard 40-hour workweek is paid and regulated by employment contracts or collective agreements. Maximum hours for overtime and holiday work vary by region.

Navigating Key Aspects of Payroll in Bosnia & Herzegovina

has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Bosnia & Herzegovina

1 January - 31 December is the 12-month accounting period that businesses in Bosnia & Herzegovina use for financial and tax reporting purposes.
Monthly

Payroll Cycle in Bosnia & Herzegovina

The payroll cycle in Bosnia & Herzegovina is usually Monthly, with employees being paid BYthe last working day of the month.
3.73 BAM p/h

Minimum Wage in Bosnia & Herzegovina

The minimum wage for employees in Bosnia & Herzegovina is typically 3.73 BAM per hour, amounting to ~596 BAM per month for a typical 40 hour work week.

Minimum wages and salaries in Bosnia & Herzegovina

In Bosnia and Herzegovina, the minimum wage is BAM 596 in the Federation of Bosnia and Herzegovina and BAM 700 in Republika Srpska.

Bonus Payments in Bosnia & Herzegovina

There is no statutory requirement to provide a 13th salary.

Comprehensive Overview of Employment Taxes in Bosnia & Herzegovina

Understanding the tax obligations for both employers and employees is crucial when operating in Bosnia & Herzegovina's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Bosnia & Herzegovina.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 8% - 10% on top of the employee salary in Bosnia & Herzegovina.

Tax Type Tax Rate

Employee Payroll Tax Contributions

In Bosnia & Herzegovina, the typical estimation for employee payroll contributions cost is around 30.5% - 31% (depends on region).

Tax Rate Tax Type

Individual Payroll Tax Contributions

Bosnia and Herzegovina comprises two entities: the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS), along with the Brčko District (BD), administered jointly. Each region applies a flat income tax rate: 10% in the Federation of Bosnia and Herzegovina (FBiH), 8% in Republika Srpska (RS), and 10% in the Brčko District (BD).

Tax Rate Income Bracket

Pension in Bosnia & Herzegovina

In Bosnia and Herzegovina, all employed individuals must contribute to a mandatory pension plan. Eligibility for an old-age pension is based on reaching 65 years of age and meeting specific insurance service requirements: 15 years of service, 20 years of pension service, or 40 years of insurance service, regardless of age.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Bosnia & Herzegovina tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Bosnia & Herzegovina

When it comes to terminating employment in Bosnia & Herzegovina, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Bosnia and Herzegovina, employment terminations must be justified and follow a fair process. Termination can occur for reasons such as:

  • Misconduct (employee must receive one written and two verbal warnings)
  • Agreement between the employer and employee
  • Expiration of contract
  • After the employee completes 65 years of age and 20 years of insurance record

Notice Period

The minimum notice period in Bosnia and Herzegovina is 7 days for employee-initiated contract cancellations and 14 days for employer-initiated cancellations. The maximum notice period is 1 month for employee-initiated cancellations and 3 months for employer-initiated cancellations.

Severance Pay

Severance pay in Bosnia and Herzegovina must be at least 1/3rd of the average monthly salary (based on the last 3 months) for each year of employment. The specific amount is determined by the employment agreement. Employees with a minimum of two years of service are typically eligible for severance.

Annual Leave Entitlements and Company Policies in Bosnia & Herzegovina

The annual leave entitlement in Bosnia & Herzegovina is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Bosnia & Herzegovina

Bosnia and Herzegovina observes 5 mandatory national public holidays annually:

Holiday Date

Paid Time Off in Bosnia & Herzegovina

Maternity Leave in Bosnia & Herzegovina

Paternity Leave in Bosnia & Herzegovina

Sick Leave in Bosnia & Herzegovina

Parental Leave In Bosnia & Herzegovina

Bosnia & Herzegovina's Benefits Built Into Playroll

Competitive benefits package in Bosnia & Herzegovina

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Bosnia & Herzegovina's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Bosnia & Herzegovina

Make your benefits package in Bosnia & Herzegovina a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Bosnia & Herzegovina

Employers in Bosnia and Herzegovina are required to provide certain mandatory benefits.

  • Social security benefits
  • Severance pay
  • Annual leave

Playroll allows you to provide localized benefits for employees in Bosnia & Herzegovina within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Bosnia & Herzegovina create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Bosnia & Herzegovina

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Bosnia & Herzegovina.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!