Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
An "Employer of Record" in Bosnia and Herzegovina is a designated entity that takes on the legal responsibilities of an employer, including payroll, tax compliance, and other employment-related obligations, on behalf of a company or organization operating in the country.
| Overview | |
| Continent | Europe |
| Country | Bosnia and Herzegovina |
| Capital | Sarajevo |
| Time zone | UTC+01:00 (CET) |
| Total Time zones | 1 |
| Personal Tax filing deadline | FBiH and RS: 31 March; |
| Financial Year | 1 January- 31 December |
| Date format | dd/mm/yyyy |
| Currency | Bosnian Mark (BAM) |
| VAT | the standard rate is 17% |
Employer Payroll Contributions in Bosnia and Herzegovina
| Employers | % of Gross Salary |
| Pension and Invalid Insurance | 6% |
| Health Insurance | 4% |
| Unemployment | 0.5% |
| Total Employment Cost | 10.5% |
Employee Payroll Contributions in Bosnia and Herzegovina
| Employees | % of Gross Salary |
| Pension and Invalid Insurance | 17% |
| Health Insurance | 12.5% |
| Unemployment | 1.5% |
| Total Employee Cost | 31% |
Minimum Wages in Bosnia and Herzegovina
| Minimum Wage | |
| Minimum Wage | 520 BAM per month. |
Payroll Cycle in Bosnia and Herzegovina
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Not required by law. |
Personal Income Tax in Bosnia and Herzegovina
| Income Tax | |
| Flat Rate | 10% |
Mandatory Employee Benefits in Bosnia and Herzegovina
Bosnia and Herzegovina, consisting of different administrative entities, has certain mandatory employee benefits that employers must provide. These include pension contributions, personal accident insurance (in the Republic of Srpska), legislated leaves, paid time off, unemployment insurance, and eye exams. It's important to note that there may be some variations in regulations across the different entities.
Pension
A pension plan is compulsory for all employed individuals in Bosnia and Herzegovina. Employers are required to contribute a specified percentage of the gross salary towards the pension scheme, which is approximately 23%. Eligibility for an old-age pension is determined by reaching the age of 65 with a minimum of 15 years of insurance service, 20 years of pension service, or 40 years of insurance service regardless of age.
Group Personal Accident Insurance
In the Republic of Srpska, group personal accident insurance is mandatory, while it is voluntary in other entities. This coverage typically includes benefits for death due to illness or accident, permanent disability, treatment costs resulting from an accident, and hospitalization due to an accident.
Legislated Leaves
Employees in Bosnia and Herzegovina are entitled to various legislated leaves, which include annual leave, temporary incapacity for work (sick leave), and authorized absences from work. Employers are required to maintain the employee's position until it is reasonable for them to return to work.
Paid Time Off - Maternity Benefits
Maternity leave is granted to employed women during pregnancy, childbirth, and childcare. The duration of maternity leave is one year continuously, with the option for exceptional cases of a shorter leave not less than 42 days after giving birth. Fathers also have the right to take maternity leave under certain circumstances. During maternity leave, a woman on a fixed-term contract is protected from termination, but the employment contract is not automatically extended beyond the agreed term.
Unemployment Insurance
Individuals who become unemployed and meet specific criteria are entitled to cash benefits. The amount of the benefit is calculated based on the average net salary received in the last three months before termination of employment. The duration of payment depends on the individual's work history.
Eye Exams
Eye exams are covered under government health insurance plans and may also be available through voluntary supplemental health plans.
Supplementary Employee Benefits
Healthcare
International employers in Bosnia and Herzegovina often provide extended healthcare benefits to complement the government health insurance plan. This includes outpatient healthcare services in private clinics, and optional annual preventive exams.
Workplace Canteens
While workplace canteens are not common in Bosnia and Herzegovina, there is a growing trend in certain industries, such as technology, to provide catered lunches or discounted food prices in onsite cafeterias, particularly among larger employers or those located outside urban areas.