Hire in Bosnia and Herzegovina

Bosnia and Herzegovina is situated in the western Balkan Peninsula of Europe, and extends an area of 51,209 km2. The roughly triangular-shaped Bosnia and Herzegovina is bordered on the north, west, and south by Croatia, on the east by Serbia, on the southeast by Montenegro, and on the southwest by the Adriatic Sea.

The Country is governed by two entities (the Federation of Bosnia and Herzegovina, and the Republika Srpska) and one district (Brčko District), each with its own distinctive labor law and tax policies.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Bosnia and Herzegovina.

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Easily onboard your remote talent in Bosnia and Herzegovina through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Bosnia and Herzegovina

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Cost of living index

$$ (96 out of 139 nations)

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Currency

Convertible Mark (KM, BAM)

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Payroll frequency

Monthly

Basic facts

Bosnia and Herzegovina is situated in the western Balkan Peninsula of Europe, and extends an area of 51,209 km2. The roughly triangular-shaped Bosnia and Herzegovina is bordered on the north, west, and south by Croatia, on the east by Serbia, on the southeast by Montenegro, and on the southwest by the Adriatic Sea.

The Country is governed by two entities (the Federation of Bosnia and Herzegovina, and the Republika Srpska) and one district (Brčko District), each with its own distinctive labor law and tax policies.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Bosnia and Herzegovina.

Capital

Sarajevo

Official language/s

Bosnian, Croatian, Serbian

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Population

3.21 million (2023 est.)

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VAT - standard rate

17%

The holidays mentioned below are valid for the year 2025.

January 1New Year’s DayNational
January 2New Year HolidayNational
January 6Orthodox Christmas EveRepublika Srpska
January 7Orthodox Christmas DayRepublika Srpska
January 9Republic DayRepublika Srpska
January 14Orthodox New YearRepublika Srpska
March 1Independence DayFederation
March 30Ramadan BajramFederation
April 18Orthodox Good FridayRepublika Srpska
April 20Orthodox Easter SundayRepublika Srpska
April 20Catholic Easter SundayFederation
April 21Orthodox Easter MondayRepublika Srpska
April 21Catholic Easter MondayFederation
May 1Labor Day
May 2Labor Day Holiday
May 9Victory DayRepublika Srpska
June 6Kurban BajramFederation
June 28St. Vitus DayRepublika Srpska
November 1All Saints' DayFederation
November 21Dayton Agreement DayRepublika Srpska
November 25Statehood DayFederation
December 25Catholic Christmas DayFederation

The approximate time for sharing the contract with an employee in Bosnia and Herzegovina is 10 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Bosnia and Herzegovina has three different labor codes for the Federation of Bosnia and Herzegovina, the Republika Srpska, and the Brčko District. Within the Federation, there are additional 10 cantonal regulations regarding the labor code.
  • Employers in the Federation must hire at least one person with a disability for every 16 employees, or pay contributions to the “Fund for Professional Rehabilitation and Employment of Persons with Disabilities.”
  • The employer does not pay social security contributions in the Republika Srpska.
  • In the Federation of Bosnia and Herzegovina, the basic salary is increased by 0.4% for each year of employment.
  • In Republika Srpska, the basic salary should be increased by 0.3% for each year of service.
  • Remote work in Bosnia and Herzegovina is defined as work performed outside the employer’s premises and usually only permits activities not dangerous and harmful to the employee and the working environment.

Three distinct social security systems apply in Bosnia and Herzegovina:

Federation*

Categories

Employer Contributions

Employee Contributions

Pension and Disability Insurance 6.0% 17.0%
Health Insurance 4.0% 12.5%
Unemployment Insurance 0.5% 1.5%
Total 10.5% 31.0%

*The bases for contributions are the gross salary.

Additionally, employers in the Federation of Bosnia need to contribute 0.5% for “Protection from Natural and Other Disasters” and 0.5% for “Water Protection Charges”, calculated at the net salary.

 

Republika Srpska**

Categories

Employer Contributions

Employee Contributions

Pension and Disability Insurance 0% 18.5%
Health Insurance 0% 12.0%
Unemployment Insurance 0% 0.6%
Child protection 0% 1.7%
Total 0% 32.8%

**The bases for contributions are the net salary.

 

Brčko District****

Categories

Employer Contributions

Employee Contributions

Pension and Disability Insurance 6.0% or 0% 17.0% or 18.5%***
Health Insurance 0% 12.0%
Unemployment Insurance 0% 1.5%
Total 6.0% or 0% 30.5% or 32.0%

***Persons who are working in Brčko District can choose whether to contribute to the pension and disability insurance of the Federation (17%) or the Republika (18.5%).

****The bases for contribution are the total gross salary if employees choose the pension scheme of the Federation, or the net salary if employees choose the pension scheme of the Republika.

Working Hours

Full-time work lasts 40 hours per week unless otherwise specified by law, collective agreement, rulebook, general act, or employment contract.

Overtime
Federation Republika Srpska Brčko District
Up to 8 hours per week At most 4 hours per day, 10 hours per week, or 180 hours per calendar year Up to 10 hours per week
Probation Period
Federation Republika Srpska Brčko District
Maximum of 6 months Maximum of 3 months Maximum of 6 months
Termination Notice Period

Termination notice periods depend on the causes of termination and the jurisdiction of the employment contract:

Causes Federation Republika Srpska Brčko District
During probation At least 7 days  At least 7 days At least 7 days
Regular termination At least 14 days At least 30 days At least 15 days
Serious breach of contract Without notice Within 3 months from the day of learning about the facts or 6 months from the date of occurrence Without notice
Working Hours

Full-time work lasts 40 hours per week unless otherwise specified by law, collective agreement, rulebook, general act, or employment contract.

Overtime
Federation Republika Srpska Brčko District
Up to 8 hours per week At most 4 hours per day, 10 hours per week, or 180 hours per calendar year Up to 10 hours per week
Probation Period
Federation Republika Srpska Brčko District
Maximum of 6 months Maximum of 3 months Maximum of 6 months
Termination Notice Period

Termination notice periods depend on the causes of termination and the jurisdiction of the employment contract:

Causes Federation Republika Srpska Brčko District
During probation At least 7 days  At least 7 days At least 7 days
Regular termination At least 14 days At least 30 days At least 15 days
Serious breach of contract Without notice Within 3 months from the day of learning about the facts or 6 months from the date of occurrence Without notice

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Three distinct social security systems apply in Bosnia and Herzegovina:

Federation*

Categories

Employer Contributions

Employee Contributions

Pension and Disability Insurance 6.0% 17.0%
Health Insurance 4.0% 12.5%
Unemployment Insurance 0.5% 1.5%
Total 10.5% 31.0%

*The bases for contributions are the gross salary.

Additionally, employers in the Federation of Bosnia need to contribute 0.5% for “Protection from Natural and Other Disasters” and 0.5% for “Water Protection Charges”, calculated at the net salary.

 

Republika Srpska**

Categories

Employer Contributions

Employee Contributions

Pension and Disability Insurance 0% 18.5%
Health Insurance 0% 12.0%
Unemployment Insurance 0% 0.6%
Child protection 0% 1.7%
Total 0% 32.8%

**The bases for contributions are the net salary.

 

Brčko District****

Categories

Employer Contributions

Employee Contributions

Pension and Disability Insurance 6.0% or 0% 17.0% or 18.5%***
Health Insurance 0% 12.0%
Unemployment Insurance 0% 1.5%
Total 6.0% or 0% 30.5% or 32.0%

***Persons who are working in Brčko District can choose whether to contribute to the pension and disability insurance of the Federation (17%) or the Republika (18.5%).

****The bases for contribution are the total gross salary if employees choose the pension scheme of the Federation, or the net salary if employees choose the pension scheme of the Republika.