Payroll and benefits guide
Bosnia and Herzegovina
CapitalSarajevo
Fiscal Year1 January - 31 December
Date Formatdd/mm/yyyy
CurrencyBAM (Bosnia-Herzegovina Convertible Mark)
Payroll FrequencyMonthly
Employer Taxes0% – 6%
Employee Costs31% – 32.8%
Overview
- Languages
- Bosnian, Croatian, Serbian
- Income tax
- 8% – 10%
- VAT
- 17%
- Single VAT rate across the country
Contributions
Employer
2.5%
Pension and disability insurance (FBiH)
2%
Health insurance (FBiH)
0.5%
Unemployment insurance (FBiH)
0.5% + 0.5%
Disaster protection and water protection charges (FBiH)Calculated on net salary
0%
Employer contributions (Republika Srpska)Republika Srpska has no employer social security contributions
0% – 6%
Total employer cost0% in Republika Srpska; about 5–6% in FBiH
Employee
31%
Social security (FBiH)Pension 17%, health 12.5%, unemployment 1.5%, on gross salary
32.8%
Social security (Republika Srpska)Pension 18.5%, health 12%, unemployment 0.6%, child protection 1.7%, on gross salary
31% – 32.8%
Total employee cost
Minimum Wage & Working Hours
- Minimum wage
- BAM 1,000 – 1,027 (net) / Monthly
- 2026 rates: BAM 1,027 net in FBiH; BAM 1,000 net (BAM 1,476.23 gross) in Republika Srpska, with higher tiers by education level
- Standard working hours
- 40 hours per week
- Overtime
- Paid at a premium set by the entity labor law and collective agreements
Leave
- Annual leave20 working days minimumExtra days by length of service and working conditions
- Maternity leave1 yearBenefits are paid through entity and cantonal social schemes, so amounts vary by location
Termination
- Probation period
- Up to 6 months
- Notice period
- Set by entity labor law and the contract; in FBiH, at least 14 days when the employer gives notice
- Severance pay
- In FBiH, at least one-third of average monthly salary per year of service for employees with 2+ years of service
- 13th salary
- Not mandatory
Benefits
- Meal allowanceCommon
Daily allowance paid with salary, with tax-free limits set by each entity
- Transport allowanceCommon
Reimbursement of commuting costs
Visas & Work Permits
Work permit and temporary residence
- Requirements
- Job offer and a work permit issued by the employment service of the relevant entity
Temporary residence is granted on the basis of the work permit
FAQ
Sources
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