Hire employees and contractors in Bosnia and Herzegovina

Remote’s guide to employing in Bosnia and Herzegovina.

  • Capital city

    Sarajevo

  • Currency

    Bosnia and Herzegovina convertible mark
    (KM, BAM)

  • Population size

    3,301,000
    (2019)

  • Languages spoken

    Bosnian, Croatian, Serbian

  • Availability

    Remote-Owned Entity in 2023

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

Bosnia and Herzegovina is a republic in Southeast Europe that’s home to the continent’s last remaining jungle, a population obsessed with bosanska kafa — Bosnian coffee, and the world’s only lunar clock.

The newly formed heart-shaped nation is based on liberal policies that have contributed to strong economic growth in agriculture and a burgeoning service industry.

Currently, the nation’s politics has it split into three constituent republics: the Federation of Bosnia and Herzegovina (FBiH), Republika Srpska (RS), and Brčko District, so our guide to employing in Bosnia will often feature three different sets of policies in force for the districts across the nation.

  • Capital city

    Sarajevo

  • Currency

    Bosnia and Herzegovina convertible mark
    (KM, BAM)

  • Languages spoken

    Bosnian, Croatian, Serbian

  • Population size

    3,301,000 (2019)

  • Ease of doing business

    Easy

  • Cost of living index

    38.56 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    17%

  • GDP - real growth rate

    2.7% (2019)

Grow your team in Bosnia and Herzegovina with Remote

To employ in Bosnia and Herzegovina, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Bosnia and Herzegovina can get complicated, especially without established local relationships. 

Remote’s global employment solution makes it easy for your company to employ workers in Bosnia and Herzegovina quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

Like many other countries, Bosnia treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

Employing in Bosnia and Herzegovina

Provisions for employee protections and workers’ rights are spelled out in the Bosnian Constitution as well as several government statutes, such as the Labour Law of 1999, and the Employment Law of the Federation of Bosnia and Herzegovina. Employees in Bosnia and Herzegovina generally enjoy protection against discrimination based on age and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Bosnia.

Competitive benefits package in Bosnia and Herzegovina

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Bosnia and Herzegovina are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Calculate the cost to hire an employee
in Bosnia and Herzegovina

Taxes in Bosnia and Herzegovina [FBiH, Republika Srpska, & Brčko District]

Learn how employment taxes affect your payroll and your employees’ paychecks in the Federation of Bosnia and Herzegovina, in Republika Srpska and in Brčko District.

  • Employer Federation of Bosnia and Herzegovina

    • 6%: Pensions & invalid insurance

    • 4%: Health insurance

    • 0.5%: Unemployment insurance

    Federation of Bosnia and Herzegovina

  • Employee Federation of Bosnia and Herzegovina

    • 17%: Pensions & invalid insurance

    • 12.5%: Health insurance

    • 1.5%: Unemployment insurance

    Federation of Bosnia and Herzegovina

  • Personal income tax rates Federation of Bosnia and Herzegovina

    • 10%: Flat rate

    Federation of Bosnia and Herzegovina

  • Employee Republika Srpska

    • 18.5%: Pensions & invalid insurance

    • 12%: Health insurance

    • 0.6%: Unemployment insurance

    • 1.7%: Child protection contribution

    Republika Srpska

  • Personal income tax rates Republika Srpska

    • 10%: Flat rate

    Republika Srpska

  • Employee Brčko District

    • 12%: Health insurance

    Brčko District

  • Personal income tax rates Brčko District

    • 10%: Flat rate

    Brčko District

Types of leave

Paid time off

Across the nation, employees are limited to 20 days of paid leave annually, while workers in the Federation of Bosnia and Herzegovina (FBiH) can enjoy up to 30 days of paid vacation every year.

Public holidays

There are 22 public holidays.

Sick leave

Workers across the entire nation are generally entitled to paid sick leave for at least five days a year.

Maternity leave

Female employees in the FBiH are entitled to an entire year of maternity leave and can work half-time post-maternity until the newborn turns two.

On the other hand, female employees in Republika Srpska are equally entitled to a year of fully paid maternity leave for single births. This increases to a year and a half for twin births or any subsequent births after a mother’s second child.

Pregnant and post-partum employees are obligated to spend a minimum of 42 and 60 days of their maternity leave in FBiH and Republika Srpska respectively.

Paternity leave

Fathers are entitled to seven days of paid paternity leave and can exercise their partner’s maternity leave entitlement if the mother dies during or after childbirth.

Employment termination

Termination process

Employee contracts can be terminated with written notice provided a reasonable justification is provided.

Notice period

Notice periods can range from at least 14 days to a maximum of three months.

Severance pay

Unless they’re let go for misconduct, employees are typically entitled to a severance package determined by collective bargaining or whatever is stipulated in the employment contract.

Severance benefits cannot be less than a third of an employee’s wages for each year they were employed.

Probation periods

Probation periods are capped at three months.

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