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Payroll and Benefits Guide Bosnia and Herzegovina

Last updated: May 03, 2023

Currency
Bosnia-Herzegovina Convertible Marka (BAM)
Employer Taxes
Unknown
Payroll Frequency
Monthly
Employee Costs
31%
Capital
Sarajevo
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Bosnia and Herzegovina consist of two entities: Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS), with a third region, the Brčko District (BD).

Federation of Bosnia and Herzegovina (FBiH)

Employer
Employer Payroll Contributions
6.00%
Social Security -Pension and Invalid insurance
4.00%
Social Security -Health Insurance
0.5%
Social Security -Unemployment Insurance
0.5%
 Natural Disasters Fund
0.01%
Water Fund
10.50%
Total Employment Cost *
Employee
Employee Payroll Contributions
17.00%
Social Security -Pension and Invalid insurance
12.50%
Social Security -Health Insurance
1.5%
Social Security – Unemployment Insurance
31.00%
Total Employee Cost
Employee Income Tax
10.00%
Flat Rate *

* Federation of Bosnia and Herzegovina personal allowances (monthly):
Personal allowance – 300 BAM
Dependent family member – spouse 150 BAM
Dependent family member – first child 150 BAM
Dependent family member – second child 270 BAM
Dependent family member – third and every next child 90 BAM
Dependent family member – parent (whose monthly income does not exceed BAM 300) 90 BAM

Brčko District

Employer
Employer Payroll Contributions
6.00%
Social Security -Pension and Invalid insurance
6.00%
Total Employment Cost
Employee
Employee Payroll Contributions
17.00%
Social Security -Pension and Invalid insurance (employees working in this district can opt to choose either the fund of Republika Srpska or fund of the Federation of Bosnia and Herzegovina, for the pension and invalid insurance contributions)
12.00%
Social Security -Health Insurance
1.5%
Social Security – Unemployment Insurance
30.50%
Total Employee Cost
Employee Income Tax
10.00%
Flat Rate *

* Brčko District Personal allowances (annually)

Personal allowance 6,000 BAM
Dependent family members and persons receiving aliment based on the agreement on life-long aliment (50% of personal allowance) 3,000 BAM
Deduction for disability of taxpayer or dependent family member – 10% of personal allowance for every determined 20% of invalidity
Permanent disability 3,000 BAM

Republika Srpska

Employer
Employer Payroll Contributions
0%
Total Employment Cost *
Employee
Employee Payroll Contributions
18.50%
Social Security -Pension and Invalid insurance
10.20%
Social Security -Health Insurance
0.6%
Social Security – Unemployment Insurance
1.7%
Social Security – Child Protection
31.00%
Total Employee Cost
Employee Income Tax
8.00%
Flat Rate

* In the Federation of Republika Srpska there are no employer’s social security contributions.
** Republika Srpska personal allowances (annually)
Personal allowance – 6,000 BAM
Dependent family member – 900 BAM

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The minimum wage in the Federation of Bosnia and Herzegovina is BAM 900 per month.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

In Bosnia and Herzegovina the payroll cycle is generally monthly.

13th Salary

There is no statutory requirement to provide a 13th salary.

Authority Payments

Authority Payment

Paid To

Due Date

Method

Republika Srpska, Ministarstvo Finansija , Poreska uprava, child protection of RS

712199

Last day of the following month

Wire

Republika Srpska, Ministarstvo Finansija , Poreska uprava, disability RS

712171

Last day of the following month

Wire

Republika Srpska, Ministarstvo Finansija , Poreska uprava, unemployment RS

712199

Last day of the following month

Wire

Republika Srpska, Ministarstvo Finansija , Poreska uprava, Pension contributions RS

712199

Last day of the following month

Wire

Republika Srpska, Ministarstvo Finansija , Poreska uprava, Health contributions RS

712199

Last day of the following month

Wire

Republika Srpska, Ministarstvo Finansija , Poreska uprava, Income tax RS

713113

Last day of the following month

Wire

Porezna uprava Federacije BIH, Health insurance contributions

712111

Last day of the following month

Wire

Porezna uprava Federacije BIH, Unemployment contributions

712113

Last day of the following month

Wire

Working Hours

General

The standard workweek is limited to 40 hours per week with the working week lasting five days (Monday-Friday).
In the Federation of Bosnia and Herzegovina a woman working full working hours after having used her maternity leave shall be entitled to be absent from work twice daily for a duration of one hour each time for the purpose of nursing the child until the child reaches one year of age.

In the Republic of Srpska, if a woman starts work before the expiry of the whole maternity leave period (12 or 18 months, respectively), she shall be entitled to additional 60 minutes of breaks during working hours in order to breastfeed the child.

In the District of Brcko, a woman who after maternity leave works her normal hours of work shall be entitled to be absent from work for one hour twice a day to breastfeed the child, counted as normal hours of work until the child reaches one year of age.

Overtime

All work exceeding the standard working hours a week is to be paid as overtime and is regulated by employment contract/collective agreements. When an employee is requested to work overtime or work on holidays, there is a maximum number of hours allowed. The maximum differs per region as below:

  • Federation of Bosnia and Herzegovina: A pregnant woman, mother, or an adoptive parent with a child of up to three years of age or a self-sustaining parent or adoptive parent with a child of up to six years of age may work overtime if she/he provides a written statement of voluntary consent to such work.
  • Republic of Srpska: No overtime work shall be ordered for pregnant women, a mother of a child of up to three years of age, and single parents or single adoptive parent of a child under six years of age. Exceptionally, these employees may work overtime if he/she provides a written statement of his/her voluntary consent to do it.
  • District of Brsko: A pregnant women, a mother, an adoptive parent with a child of up to one year of age, or a single parent or single adoptive parent with a child of up to two years of age may work overtime if he/she agrees in writing of his/her own free will to such hours of work.

According to collective agreement for Bosnia & Herzegovina, overtime is paid at a rate of 125% of the net hourly rate. Work on a day of weekly rest is paid at least 115% of the net hourly rate. Work on national holidays is paid at 40% of the net hourly rate.

According to collective agreement for RS, overtime work is paid at a salary rate of 130%. Work on public holidays and other days on which no work is done by law is paid at a salary rate of 150%.

 

Leave

Annual Leave (vacation)

Employees are entitled to 20 working days of paid annual leave and no more than 30 working days as stipulated in the employment contract and labour law.

Annual leave may be used in two segments. The first part shall be used for a duration of at least 12 working days in the course of a calendar year. The remaining days above the 12 days that must be used within the year can carryover to be used by no later than 30 June of the following year. Employees are entitled to be absent from work for up to four days in a calendar year to meet his religious and/or tradition-related needs e.g. to celebrate religious holidays, of which two of these days shall be paid.

Public Holidays

Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
2 Jan 2024 Tuesday New Year’s Holiday
6 Jan 2024 Saturday Orthodox Christmas Eve Republika Srpska
7 Jan 2024 Sunday Orthodox Christmas Republika Srpska
9 Jan 2024 Tuesday Republic Day Republika Srpska
15 Jan 2024 Monday Orthodox New Year’s Day Republika Srpska
1 Mar 2024 Friday Independence Day Federation of Bosnia & Herzegovina
10 Apr 2024 Wednesday Ramadan Bajram Federation of Bosnia & Herzegovina
1 May 2024 Wednesday Labour Day
2 May 2024 Thursday Labour Day
3 May 2024 Friday Good Friday (Orthodox) Republika Srpska
6 May 2024 Monday Easter Monday (Orthodox) Republika Srpska
9 May 2024 Thursday Day of Victory over Fascism Republika Srpska
16 Jun 2024 Sunday Kurban Bajram Federation of Bosnia & Herzegovina
21 Nov 2024 Thursday Signing of Peace Agreement Republika Srpska
25 Nov 2024 Monday National Day Federation of Bosnia & Herzegovina
24 Dec 2024 Tuesday Catholic Christmas Eve Federation of Bosnia & Herzegovina
25 Dec 2024 Wednesday Catholic Christmas Federation of Bosnia & Herzegovina

Sick Days

All sick days are paid. In RS, the 1st month of sick leave is paid by the employer after which the Social Security takes over. In Federation of B&G the first 42 days is paid by the employer, after that the Social Security fund takes over payment.

A sick note must be provided as soon as possible as proof of illness, even if the sick leave was just one day.

Maternity Leave

Female employees are generally entitled to up to twelve months of maternity leave with a minimum number of days as below:

  • In the Federation of Bosnia and Herzegovina a woman may not take shorter maternity leave than 42 days following the birth of the child.
  • In the Republic of Srpska a woman may not start work before 60 days have expired after childbirth.
  • In the District of Brcko a woman may have seven days before the presumed date of confinement and 42 days after childbirth.

Following completion of the maternity leave, she may work half-time until her children are two years old or the father may work half-time instead if the mother returns to full time work. The employee is entitled to maternity pay under labour law with a salary of between 50-80% of their regular wage, dependent upon the various cantonal regulations of the Federation of Bosnia and Herzegovina.
In Republika Srpska and the District of Brcko the employee is also entitled to an additional six months of leave if she has twins or for every child from her third child on and is entitled to 100% of her regular salary compensation.

Paternity Leave

In the Federation of Bosnia and Herzegovina a father is entitled to unpaid leave up to seven working days in one calendar year and in the Republic of Srpska/District of Brsko, it is up to three working days within one calendar year.

Parental Leave

There is no other parental leave in Federation of Bosnia and Herzegovina.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

Employers can terminate a fix term contract by giving the following reasons – business, personal, or workers misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given and the employee gets a chance to explain actions.
Before the termination for misconduct, an employee must receive one written and two verbal warnings. If another violation is made within 12 months of the third warning, the employer can dismiss an employee without notice or severance pay. The dismissal must be given in writing.

Notice Period

In Bosnia and Herzegovina, employees are required to give a minimum of seven days’ notice, and a maximum of 30 days’ notice. Employers are required to give a minimum notice period of 14 days and a maximum of 3 months’ notice. During probation, either party can terminate by giving seven days notice.

In Republic Srpska, the minimum notice period for termination of employment by the employer is 30 days. The minimum notice period for termination of employment by the worker is 15 calendar days. During probation, either party can terminate by giving seven days notice.

Severance Pay

In Bosnia and Herzegovina, an employee who has worked for at least two years is generally entitled to a severance payment, the amount of which is usually fixed in the collective agreement. In addition, the payment may not be less than 1/3rd of the employee’s average monthly salary for each year of employment or more than six average salaries.

Probation Period

In Bosnia and Herzegovina, probationary periods must be no longer than six months.

VISA

VISA

A short-stay visa is issued to a foreign citizen who wants to visit Bosnia for 90 days within any 180 days period. This visa is issued for one, two, or multiple entries. You can get a Bosnian short-stay visa for the following purposes:

  • Tourism
  • Business meetings
  • Medical treatment
  • Family visits
  • Political events
  • Sports events
  • Educational training, etc.

With a short stay visa you cannot apply for a temporary residence permit.
A long-stay visa is issued to a foreign citizen who wants to stay in Bosnia for six to twelve months. This visa is issued with one, two, or multiple entries. A long-stay visa is issued for the following purposes:

  • Work
  • Study
  • Medical treatment
  • Business
  • Family reunion
  • Research work, etc.

If a longer stay than one year in Bosnia is required, a long-stay visa must be applied together with a temporary residence permit.

VAT

General

The standard VAT rate is 17% and the VAT regime applies equally throughout the country of Bosnia and Herzegovina. There is no reduced VAT rate in Bosnia and Herzegovina.

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Payroll and Benefits Guide
in Bosnia and Herzegovina

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  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

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Public Holidays Calendar

Bosnia and Herzegovina
Download:
CSV
PDF
ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
2 Jan 2024 Tuesday New Year’s Holiday
6 Jan 2024 Saturday Orthodox Christmas Eve Republika Srpska
7 Jan 2024 Sunday Orthodox Christmas Republika Srpska
9 Jan 2024 Tuesday Republic Day Republika Srpska
15 Jan 2024 Monday Orthodox New Year’s Day Republika Srpska
1 Mar 2024 Friday Independence Day Federation of Bosnia & Herzegovina
10 Apr 2024 Wednesday Ramadan Bajram Federation of Bosnia & Herzegovina
1 May 2024 Wednesday Labour Day
2 May 2024 Thursday Labour Day
3 May 2024 Friday Good Friday (Orthodox) Republika Srpska
6 May 2024 Monday Easter Monday (Orthodox) Republika Srpska
9 May 2024 Thursday Day of Victory over Fascism Republika Srpska
16 Jun 2024 Sunday Kurban Bajram Federation of Bosnia & Herzegovina
21 Nov 2024 Thursday Signing of Peace Agreement Republika Srpska
25 Nov 2024 Monday National Day Federation of Bosnia & Herzegovina
24 Dec 2024 Tuesday Catholic Christmas Eve Federation of Bosnia & Herzegovina
25 Dec 2024 Wednesday Catholic Christmas Federation of Bosnia & Herzegovina