Talent Wiki - Bosnia & Herzegovina
Your quick guide on talent and labor compliance norms in Bosnia & Herzegovina
Capital
Sarajevo
Currency
Convertible Mark (BAM)
Languages
Bosnian, Serbian, Croatian
Payroll Frequency
Monthly
GDP per Capita
$6,818
Employer Tax
10.5%
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:
Univerzitet u Sarajevu (University of Sarajevo)
RANKING
Local: 1
World : 1899
Sveucilište u Mostaru
RANKING
Local: 2
World : 4156
Univerzitet u Banjoj Luci
RANKING
Local: 3
World : 4200
International BURCH University
RANKING
Local: 4
World: 5528
Internacionalni univerzitet u Sarajevu
RANKING
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 Sourcing Tips
Top Local Job Boards:
Jobisland, JobBoardFinder, LinkedIn
Number of LinkedIn users:
333,500
Top Recruitment Agencies:
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
Payroll Cycle
The payroll cycle in Bosnia and Herzegovina is Monthly.
Minimum Wage
The minimum wage in the Federation of Bosnia and Herzegovina is 543BAM and in Republika Srpska is 590BAM.
Overtime Pay
There is no mandatory percentage for overtime work. However, it is based on the collective agreement between employers and employees.
Bonus
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
Taxes
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.
VAT:
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.
