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.

Hauptstadt :
Sarajevo
Währung :
Convertible Mark (KM, BAM)
Gesprochene Sprachen :
Bosnian, Croatian, Serbian
Einwohnerzahl :
3.26 million (2021 est.)
Mindestlohn :
543 BAM (FBiH) or 650 BAM (RS) Per Month
Lebenshaltungskostenindex :
$$ (96 out of 139 nations)
Payroll Frequency :
Monthly
Mehrwertsteuernormalsatz :
17%
reales BIP-Wachstum :
7.1% (2021 est.)

Statutory Holidays

The holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
January 1
New Year’s Day
National
January 2
New Year Holiday
National
January 6
Orthodox Christmas Eve
Republika Srpska
January 7
Orthodox Christmas Day
Republika Srpska
January 9
Republic Day
Republika Srpska
January 14
Orthodox New Year
Republika Srpska
March 1
Independence Day
Federation
April 17
Catholic Easter Sunday
Federation
April 18
Catholic Easter Monday
Federation
April 22
Orthodox Good Friday
Republika Srpska
April 24
Orthodox Easter Sunday
Republika Srpska
April 25
Orthodox Easter Monday
Republika Srpska
May 1
Labor Day
National
May 2
Ramadan Bajram
Federation
May 2
Labor Day Holiday
National
May 9
Victory Day
Republika Srpska
June 28
St. Vitus Day
Republika Srpska
July 9
Kurban Bajram
Federation
November 1
All Saints' Day
Federation
November 21
Dayton Agreement Day
Republika Srpska
November 25
Statehood Day
Federation
December 25
Catholic Christmas Day
Federation

Contract Sharing Time


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.

What You Need To Know


  • 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.
  • The employer does not pay social security contributions in the Republika Srpska.
  • 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.
  • 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.

Labor Conditions


Working Hours

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

Overtime
FederationRepublika SrpskaBrčko District
Up to 8 hours per weekAt most 4 hours per day, 10 hours per week, or 180 hours per calendar yearUp to 10 hours per week
Probation Period
FederationRepublika SrpskaBrčko District
Maximum of 6 monthsMaximum of 3 monthsMaximum of 6 months
Termination Notice Period

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

CausesFederationRepublika SrpskaBrčko District
During probationAt least 7 days At least 7 daysAt least 7 days
Regular terminationAt least 14 daysAt least 30 daysAt least 15 days
Serious breach of contractWithout noticeWithin 3 months from the day of learning about the facts or 6 months from the date of occurrenceWithout notice

Leave / Time Off

Annual Leave

FederationRepublika SrpskaBrčko District
At least 20 days and at most 30 daysAt least 4 working weeks, or 20 working daysAt least 20 working days

Sick Leave

FederationRepublika SrpskaBrčko 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.

Parental Leave

FederationRepublika 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.
Maternity Leave
FederationRepublika SrpskaBrčko District

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.

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.

Paternity Leave
FederationRepublika 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.
Adoption Leave
FederationRepublika SrpskaBrčko District
  • During pregnancy, childbirth, and child care, 1 of the adoptive parents of the child or a person to whom the child has been entrusted for custody and upbringing on the basis of a decision of the competent authority, has the right to leave for a period of 1 year continuously.
  • The leave is fully paid for by the employer.
  • If the child’s mother dies or leaves the child, or for other reasons is unable to care for the child, the adoptive parent has the right to leave for a period of 1 year continuously, and for twins, every 3rd and subsequent child, a period of 18 months continuously;
  • The leave is fully paid for by the employer.
  • The adoptive parent or guardian may exercise the right to maternity leave 42 days after the child’s birth:
    • In the death of the mother;
    • If the mother leaves the child or;
    • If for other justified reasons, they cannot use maternity leave;
    • The leave is fully paid for by the employer.

Other Types of Paid Leave

Types of Leave

FederationRepublika Srpska

Brčko District

Serious Illness LeaveUp to 7 working days in 1 calendar yearUp to 5 working days during 1 calendar yearUp to 5 working days in 1 calendar year
Marriage LeaveUp to 7 working days in 1 calendar yearAt most 5 workings during 1 calendar yearUp to 5 working days in 1 calendar year
Bereavement LeaveUp to 7 working days in 1 calendar yearAt least 5 working days during 1 calendar yearUp to 5 working days in 1 calendar year
Blood Donation LeaveAt least 1 day of paid leave for each donationAt most 5 workings during 1 calendar year2 working days for each voluntary blood donation

Unpaid Leave

FederationRepublika 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.

Statutory Benefits

Three distinct social security systems apply in Bosnia and Herzegovina:

CategoriesFederationRepublika SrpskaBrčko District
Pension and Invalid Insurance6.0%0%6.0%*0%*
Health Insurance4.0%0%0%0%
Unemployment Insurance0.5%0%0%0%
Protection from Natural and Other Disasters0.5%0%0%0%
Water Protection Charge0.5%0%0%0%
Employer Total11.5%0%6.0%0%

*Persons who are working in Brčko District can choose whether to contribute to the pension and invalid insurance of the Federation or the Republika.

Health Insurance

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.

Other Types of Insurance

Accident Insurance

There is no mandatory accident insurance as work injuries and occupational diseases are covered by health insurance funds within each respective jurisdiction.

Unemployment Insurance

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.

Public Pension

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.

Other Statutory Benefits

The following benefits are paid by social security.

BenefitFederation (FBiH)Republika Srpska (RS)
Disability PensionInsured 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

Disclaimer

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.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

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