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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Capital :
Sarajevo
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Currency :
Convertible Mark (KM, BAM)
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Languages spoken :
Bosnian, Croatian, Serbian
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Population :
3.26 million (2021 est.)
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Minimum wage 2023 :
596 BAM (FBiH) or 650 BAM (RS) Per Month
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Cost of Living index :
$$ (96 out of 139 nations)
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Payroll Frequency :
Monthly
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VAT - standard rate :
17%
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GDP - real growth rate :
7.1% (2021 est.)
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The holidays mentioned below are valid for the year 2024.
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.
Full-time work lasts 40 hours per week unless otherwise specified by law, collective agreement, rulebook, general act, or employment contract.
| 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 |
| Federation | Republika Srpska | Brčko District |
| Maximum of 6 months | Maximum of 3 months | Maximum of 6 months |
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 |
| Federation | Republika Srpska | Brčko District |
| At least 20 days and at most 30 days | At least 4 working weeks, or 20 working days | At least 20 working days |
| Federation | Republika Srpska | Brčko District |
| The leave lasts from the 1st day until the elected doctor of primary health care in a health institution or private practice or a medical commission determines that working capacity has been established. | The leave ceases until recovery. | Temporary incapacity for work lasts until the doctor in primary health care – in a health institution or private practice, or the medical commission decides in accordance with the regulations that working capacity is established. |
| Federation | Republika Srpska/Brčko District | |
| After the child reaches 1 year old, 1 of the parents has the right to work half-time up to 3 years of the child’s life, if the child, according to the competent health institution, needs increased care and nursing. | After the expiration of maternity leave, 1 of the employed parents has the right to work part-time until the child reaches the age of 3, if the child, according to the findings of an authorized medical doctor, needs intensive care. | |
| Federation | Republika Srpska | Brčko District |
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General Conditions During pregnancy, childbirth, and child care, a woman has the right to maternity leave lasting 1 year continuously, with a compulsory leave of 28 days before birth and 42 days after birth. |
General Conditions During pregnancy, childbirth, and child care, a woman has the right to maternity leave for a period of 1 year continuously, and for twins, every 3rd and subsequent child, a period of 18 months continuously, with a compulsory leave of 28 days before birth. |
General Conditions During pregnancy, childbirth, and child care, a woman has the right to maternity leave for a period of 1 year continuously, and for twins, every 3rd and each subsequent child, for a period of 18 months continuously, with a compulsory leave of 28 days before birth and 42 days after birth. |
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Maternity Pay During the use of maternity leave, the employee may be paid the difference up to the full salary at the expense of the employer. |
Maternity Pay During the use of maternity leave, a woman is entitled to salary compensation in the amount of the average salary she earned during the last 12 months before the start of maternity leave. |
Maternity Pay During the use of maternity leave, a woman is entitled to salary compensation at the expense of the District budget, in the amount of the average salary she earned during the last 12 months before the start of maternity leave. |
| Federation | Republika Srpska |
Brčko District |
| Up to 7 working days in 1 calendar year, paid by the employer. | Not exceeding 5 workings during 1 calendar year, paid by the employer. | Up to 5 working days in 1 calendar year, paid by the employer. |
| Federation | Republika Srpska | Brčko District |
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Types of Leave |
Federation | Republika Srpska |
Brčko District |
| Serious Illness Leave | Up to 7 working days in 1 calendar year | Up to 5 working days during 1 calendar year | Up to 5 working days in 1 calendar year |
| Marriage Leave | Up to 7 working days in 1 calendar year | At most 5 workings during 1 calendar year | Up to 5 working days in 1 calendar year |
| Bereavement Leave | Up to 7 working days in 1 calendar year | At least 5 working days during 1 calendar year | Up to 5 working days in 1 calendar year |
| Blood Donation Leave | At least 1 day of paid leave for each donation | At most 5 workings during 1 calendar year | 2 working days for each voluntary blood donation |
| Federation | Republika Srpska |
Brčko District |
| The employer may, at the employee’s written request, grant them leave without pay. | The employer is obliged to grant the employee, at their request, unpaid leave for up to 3 days during the calendar year in order to meet their religious, national, or traditional needs. | The employer may, at the written request of the employee, grant unpaid leave, in accordance with the general act. |
Three distinct social security systems apply in Bosnia and Herzegovina:
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Federation* |
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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.
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Republika Srpska** |
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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.
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Brčko District**** |
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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.
Employers operating from the Federation of Bosnia and Herzegovina are mandated to contribute 6% of the gross wage towards health insurance. There are no mandatory employer contributions for health insurance in the Republika Srpska or Brčko District.
The health care system is decentralized and managed by 14 different administrative governments, with one at the national level, and two at the entity level (the Federation of Bosnia and Herzegovina and the Republika Srpska), 10 at the cantonal level within the Federation, and one for the Brčko District.
There is no mandatory accident insurance as work injuries and occupational diseases are covered by health insurance funds within each respective jurisdiction.
Only employers operating from the Federation of Bosnia and Herzegovina contribute 0.5% to the unemployment insurance.
Unemployment insurance is compulsory and mainly funded by contributions from the employer and the employee as part of the social security contributions.
Employers operating from the Federation of Bosnia and Herzegovina (FBiH) contribute
6% to pension insurance, while employers operating from the Republika Srpska (RS) do not contribute to pension insurance.
Those within the Brčko District can opt to contribute to either one of the two pensions funds. The Pension System is mainly funded by contributions from the employer and the employee. The retirement age is 65 years old.
The following benefits are paid by social security.
| Benefit | Federation (FBiH) | Republika Srpska (RS) |
| Disability Pension | Insured persons with Category I Disability – loss of working capacity – are entitled to a disability pension, financed by the pension and invalid insurance; | In the case of disability, the insured person is entitled to a disability pension, financed by the pension and invalid insurance |
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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