Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Bosnia & Herzegovina

Your quick guide on talent and labor compliance norms in Bosnia & Herzegovina
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Capital
Sarajevo
Currency
Convertible Mark (BAM)
Languages
Bosnian, Serbian, Croatian
Payroll Frequency
Monthly
GDP per Capita
$6,725.52
Employer Tax
10.5%

Supplementary Guide for Employment and Expansion in Bosnia & Herzegovina

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 : 1593

Univerzitet u Banjoj Luci (University of Banja Luka)

RANKING

Local: 1

World : 4272

Sveucilište u Mostaru (University of Mostar)

RANKING

Local: 1

World : 5809

Internacionalni univerzitet u Sarajevu (International University of Sarajevo)

RANKING

Local: 1

World : 6194

International BURCH University

RANKING

Local: 1

World : 6221

Salary Data

Below mentioned are some job title in Bosnia and Herzegovina and average monthly salary:

Job Title Average Monthly Salary Average Monthly Salary
Financial Manager 4,800 BAM 2500.37 USD
General Manager 4,150 BAM 2161.78 USD
Business Development Manager 3,580 BAM 1864.86 USD
Financial Analyst 2,980 BAM 1552.31 USD
Business Analyst 2,870 BAM 1495.01 USD
Project Manager 2,500 BAM 1302.28 USD

Talent Sourcing Tips

Top Local Job Boards:

Jobisland, JobBoardFinder, LinkedIn

Number of LinkedIn users:

322,500

Top Recruitment Agencies:

Clipcon, MillionMakers

Employing in Bosnia & 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

Date Name Type Details
1 Jan New Year's Day Public holiday
2 Jan New Year's (Day 2) Public holiday
3 Jan New Year Holiday Public holiday
9 Jan Day of the Republika Srpska Local holiday Republika Srpska
14 Jan Orthodox New Year Local holiday, Orthodox Republika Srpska
1 Mar Independence Day Public holiday Federation of Bosnia and Herzegovina
8 Mar Brčko District Establishment Day Local holiday Brčko
1 May Labor Day Public holiday
2 May Labor Day observed Public holiday
3 May Labor Day (Day 2) Public holiday
9 May Victory Day Working holiday Federation of Bosnia and Herzegovina
9 May Victory Day Local holiday Republika Srpska
1 Nov All Saints' Day Local holiday Federation of Bosnia and Herzegovina*
21 Nov Dayton Peace Agreement Day Local holiday Republika Srpska
25 Nov Statehood Day Local holiday Federation of Bosnia and Herzegovina
24 Dec Christmas Eve Optional Holiday All except Brčko

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 0 No
Sick Leave 0 No
Maternity Leave 0 No

Payroll

Payroll Cycle

The payroll cycle in Bosnia and Herzegovina is Monthly.

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Minimum Wage

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

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Overtime Pay

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

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Health Examination Clause

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
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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

Termination Process

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.

Notice Period

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.

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.

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