Country Payroll Guide Bosnia and Herzegovina

We deliver secure, compliant, accurate and touchless global payroll for Bosnia and Herzegovina.

Get in touch
Bosnia and Herzegovina image

Key Facts

Capital
Sarajevo
Date format
dd/mm/yyyy
Currency
Bosnian Mark (BAM)
VAT
the standard rate is 17%

Contributions

Employers

Pension and Invalid Insurance
Pension and Invalid Insurance - 6%
Health Insurance
Health Insurance - 4%
Unemployment
Unemployment - 0.5%
Total Employment Cost
Total Employment Cost - 10.5%

Employees

Pension and Invalid Insurance
Pension and Invalid Insurance - 17%
Health Insurance
Health Insurance - 12.5%
Unemployment
Unemployment - 1.5%
Total Employee Cost
Total Employee Cost - 31%

Minimum Wage

Minimum Wage
The minimum wage in Bosnia and Herzegovina is 520 BAM per month.

Payroll

Payroll Cycle
Monthly
13th Salary

Not required by law.

Income Tax

Employee Income Tax (1)
Flat Rate - 10%

Working Hours

General Working Hours

Maximum of 40 hours per week (excluding overtime).

Overtime

Overtime is limited to 10 hours per week.

Leave

Paid Time Off

Employees are entitled to a minimum of 20 days per year.

Public Holidays

In the Federation of Bosnia and Herzegovina (FBiH) there are 10 public holidays and in Republika Srpska (RS) there are 8 public holidays.

Sick Days

Employees are entitled to a minimum of five sick days a year.

Maternity Leave

Mothers are entitled to one year of maternity leave. The Federation of Bosnia and Herzegovina (FBiH) requires the mother to take at least 42 days of leave, while in Republika Srpska (RS) pregnant employees must take at least 60 days of leave.

Paternity Leave

No provisions in the law.

Parental Leave

Parents of a child between the ages of one and three years old are eligible to work half of their normal hours in order to care for their child.

Termination

Termination Process

An employer can terminate an employee’s contract with notice for misconduct or poor performance.

Notice Period

Minimum of 15 days.

Severance Pay

This can be no less than 1/3 of the employee’s average monthly wages for the previous three months for each full year of employment.

Probation Period

Maximum six months.

Visa

Employment Visa

A work permit is required for non residents who wish to work in Bosnia and Herzegovina.