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

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.