Capital City
Sarajevo
Currency
Bosnia-Herzegovina Convertible Marka
(
KM
)
Timezone
GMT +1
Payroll Frequency
Monthly
Tax Year
1 January - 31 December
Employer Tax
8% - 10%
Languages
Serbian
Croatian
Capital City
Sarajevo
Currency
Bosnia-Herzegovina Convertible Marka
(
KM
)
Timezone
GMT +1
Payroll Frequency
Monthly
Tax Year
1 January - 31 December
Employer Tax
8% - 10%
Languages
Serbian
Croatian
Hiring in Bosnia & Herzegovina for the first time can be overwhelming, especially when navigating unfamiliar employment laws. Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success. Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.
Companies can hire employees in Bosnia & Herzegovina in the following three ways:
Bosnia and Herzegovina offers employers a highly educated workforce and lower labor costs compared to Western Europe, with skilled professionals in IT, engineering, and languages.
It comprises two entities: the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS), along with the Brčko District (BD). "Bosnia" derives from "Bosana," meaning water, highlighting its abundance of rivers, lakes, and waterfalls.
Many young Bosnians are fluent in English and other European languages, making them suitable for outsourced projects.
Additionally, the country's lower cost of living and doing business provides employers with cost-effective and high-quality services.
Businesses can only operate smoothly in Bosnia & Herzegovina if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Bosnia & Herzegovina below, to avoid any compliance issues.
Hiring in Bosnia and Herzegovina demands careful adherence to local regulations and practices. Key considerations for employment contracts include:
We can help you get a new employee started in Bosnia & Herzegovina quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
In Bosnia and Herzegovina, the standard workweek is limited to 40 hours over five days, from Monday to Friday.
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. In Federation of Bosnia and Herzegovina, and in limited circumstances, the worker may work up to 8 hours of overtime per week. In Republika Srpska, a worker may work a maximum of 10 hours of overtime a week and a maximum of 4 hours per day.
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 in Federation of Bosnia and Herzegovina and 3 months in Republika Srpska.
1 January - 31 December is the 12-month accounting period that businesses in Bosnia & Herzegovina use for financial and tax reporting purposes.
The payroll cycle in Bosnia & Herzegovina is usually Monthly, with employees being paid by the last working day of the month.
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.
There is no statutory requirement to provide a 13th salary.
Employer payroll contributions are generally estimated at an additional 8% - 10% on top of the employee salary in Bosnia & Herzegovina.
In Bosnia & Herzegovina , the typical estimation for employee payroll contributions cost is around 30.5% - 31% (depends on region)%.
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).
Bosnia and Herzegovina comprises of 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), 10% in Republika Srpska (RS), and 10% in the Brčko District (BD).
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.
Bosnia and Herzegovina observes 5 mandatory national public holidays annually:
Both full-time and part-time employees in Bosnia and Herzegovina receive 20 working days of paid time off (PTO) annually, accruing at a rate of 1.6 days per month. Additionally, employees become eligible for 6 days of PTO after completing the first 6 months of employment.
Pregnant employees in Bosnia and Herzegovina can take maternity leave ranging from 42 days to 1 year, with 28 days before childbirth. The employee is required to take 42 days after childbirth (in FBiH) and 60 days (in RS). Salaries during maternity leave vary by region: in the Federation of Bosnia and Herzegovina, it's 50-80% of the reference wage, while in Republika Srpska and the District of Brcko, it's 100% of the employee's salary.
In Bosnia and Herzegovina, employees have the right to paternity leave after the first 6 weeks following childbirth if the female worker agrees in writing to waive the equivalent period of her maternity leave. Salaries during paternity leave vary: in the Federation of Bosnia and Herzegovina, it's 50-80% of the reference wage, while in Republika Srpska and the District of Brcko, it's 100% of the employee's salary.
Sick leave in Bosnia and Herzegovina follows these terms:
In Bosnia and Herzegovina, employment terminations must be justified and follow a fair process. Termination can occur for reasons such as:
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 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.
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FAQS
Standard employment terms in Bosnia and Herzegovina include working hours, leave entitlements, and conditions outlined in employment contracts, governed by labor laws.
Bosnia and Herzegovina may have a minimum wage, ensuring employees receive a baseline level of compensation set by the government.
Payroll includes gross salary, social security contributions, and income tax deductions. Employers may also contribute to health and pension funds.