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Bosnia & Herzegovina Employment Guide

Your quick guide on talent and labor compliance norms in Bosnia & Herzegovina




Convertible Mark (BAM)


Bosnian, Serbian, Croatian

Payroll Frequency


GDP per Capita


Employer Tax


Talent Overview

Bosnia and Herzegovina hold the freedom score of 63.4 and is 68th freest in the 2022 list. In the Europe region, out of 45 countries, it is ranked 36th for GDP. The GDP growth rate of the country majorly depends on manufacturing such coal, iron and industries as chemicals. Since 2021, the country has boosted its GDP rank.

Major economic hubs:

Sarajevo, Banja Luka, Zenica, Tuzla

Skills in demand:

Marketing Manager, Information Technology Engineer, Software Engineer.


Local Universities

The top local universities in Bosnia & Herzegovina are as follows:

Uni1 3

Univerzitet u Sarajevu (University of Sarajevo)


Local: 1

World : 1899

Bosnia Uni2

Sveucilište u Mostaru


Local: 2

World : 4156

Bosnia Uni3

Univerzitet u Banjoj Luci


Local: 3

World : 4200

Bosnia Uni4

International BURCH University


Local: 4

World: 5528

Bosnia Uni5

Internacionalni univerzitet u Sarajevu


Local: 5

World : 5689

Salary Data

Below mentioned are some job titles in Bosnia and Herzegovina and the average monthly salaries;

Job Title Average Monthly Salary Average Monthly Salary
Financial Manager 4,800 BAM 2593 USD
General Manager 4,150 BAM 2242 USD
Business Development Manager 3,580 BAM 1934 USD
Financial Analyst 2,980 BAM 1610 USD
Business Analyst 2,870 BAM 1550 USD
Project Manager 2,500 BAM 1350 USD
Talent Source 3

Talent Sourcing Tips

Top Local Job Boards:

Jobisland, JobBoardFinder, LinkedIn

Number of LinkedIn users:


Top Recruitment Agencies:

Clipcon, MillionMakers

Employing in Bosnia and Herzegovina

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:

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.

Public and Provincial Holidays 2023

Date Name Type Details
1 Jan New Year’s Day Public holiday  
2 Jan New Year’s (Day 2) Public holiday  
1 Mar Independence Day Public holiday BiH
1 May Labor Day Public holiday  
2 May Labor Day (Day 2) Public holiday  

Employee Leaves:

Type of Leave Time Period Mandatory
Annual/Earned Leave Atleast 18 days Yes
Sick Leave 42 days Yes
Maternity Leave 12 weeks Yes


Payroll 1

Payroll Cycle

The payroll cycle in Bosnia and Herzegovina is Monthly.

Payroll 2

Minimum Wage

The minimum wage in the Federation of Bosnia and Herzegovina is 543BAM and in Republika Srpska is 590BAM.

Payroll 3

Overtime Pay

There is no mandatory percentage for overtime work. However, it is based on the collective agreement between employers and employees.


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


Employer Payroll Tax:

Fund Contributions
Pension and Invalid Insurance 6%
Health Insurance 4%
Unemployment Insurance 0.5%

Employee Payroll Tax:

For the Federation of Bosnia and Herzegovina (FBiH):

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.


The standard VAT rate in Bosnia and Herzegovina is 17%.

Offboarding & Termination

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.

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.

Visa and Immigration

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.

Visa And Immigration 2
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Minimum Wage

Overtime Pay

Visa & Immigration