Bosnia and Herzegovina’s Employment law are collective information on labor laws, benefits, deductions, and allowances. These laws are implemented for all employees. Learn more about this here.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
The language of the employment contract in Bosnia and Herzegovina must be Bosnian, Serbian, Croatian, or the language which is understandable by both parties.
Probation Period
The probation period for newly hired employees in Bosnia and Herzegovina ranges from 3 to 4 months.
13th Month Pay
There is no statutory law for the 13th month of Pay in Bosnia and Herzegovina.
Employee Benefits
- Pension
- Accident
- Insurance Legislative Leaves
- Paid Time Off
- Unemployment Insurance
The payroll cycle in Bosnia and Herzegovina is Monthly.
The minimum wage in the Federation of Bosnia and Herzegovina is 543BAM and in Republika Srpska is 590BAM.
There is no mandatory percentage for overtime work. However, it is based on the collective agreement between employers and employees.
Employer Payroll Cost:
| Fund |
Contributions |
| Pension and Invalid Insurance |
6% |
| Health Insurance |
4% |
| Unemployment Insurance |
0.5% |
Employee Payroll Cost:
| Fund |
Contributions |
| Pension and Invalid Insurance |
17% |
| Health Insurance |
12.5% |
| Unemployment Insurance |
1.5% |
For Republika Srpska (RS):
| Fund |
Percentage of Gross Salary |
| Pension and Invalid Insurance |
18.5% |
| Health Insurance |
12% |
| Unemployment Insurance |
0.6% |
| Child Protection |
1.7% |
For Brčko District (BD):
| Fund |
Percentage of Gross Salary |
| Health Insurance |
12% |
Employee Income Tax
The Annual Taxable income rate is a flat rate of 10%, irrespective of the provinces.
VAT
The standard VAT rate in Bosnia and Herzegovina is 17%.
The employee and the employer can terminate the employment contract with a Notice period and severance pay based on years of service. The employer can immediately terminate the contract based on the reason for redundancy.
The notice period in Bosnia and Herzegovina is fifteen days.
Severance pay
The severance pay of the employee must be 1/3rd of the employee’s average monthly salary for each year of service or more than six average salaries.
A work permit visa is required for an individual to work in the country. Also, to avail of the work permit, the individual must provide all the personal documents, the employee contract, and evidence for administrative expenses within the country.