Bosnia and Herzegovina EOR & PEO
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DID YOU KNOW
- Bosnia and Herzegovina is renowned for its rich cultural tapestry, blending Eastern and Western influences.
- Sarajevo, the capital, is often referred to as the “Jerusalem of Europe” due to its diverse religious heritage.
- The country boasts stunning natural landscapes, including the Dinaric Alps and the Neretva River, making it a haven for outdoor enthusiasts.
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Working in Bosnia and Herzegovina
Financial Year Dates
The financial year in Bosnia and Herzegovina runs from 1st January until the 31st December
Minimum Wage
As of January 2025, the minimum wage varies by entity:
- Federation of Bosnia and Herzegovina: BAM 619.00 per month
- Republika Srpska: BAM 900.00 per month
Standard working hours
The standard workweek in Bosnia and Herzegovina is capped at 40 hours, in line with the labor legislation of both governing entities: the Federation of Bosnia and Herzegovina and Republika Srpska. This legal framework outlines that full-time employees should not exceed this weekly limit.
Although the laws do not prescribe a specific daily schedule, the most common arrangement sees employees working five days a week, typically from Monday to Friday.
Overtime
Overtime compensation rates differ by entity:
- Federation of Bosnia and Herzegovina: 125% of the net hourly rate
- Republika Srpska: 130% of the net hourly rate
Work on public holidays is compensated at higher rates, up to 150% in Republika Srpska.
Holiday Allowance
Employees in Bosnia and Herzegovina are entitled to sick leave if they are unable to work due to illness or injury. Sick leave is governed by the labor laws of the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS), and while regulations are broadly similar, some administrative differences may apply between the two entities.
During the initial period of sick leave, the employer is responsible for compensating the employee—typically at a rate of 80% of their regular wage, although this can vary based on internal company policies or Collective Bargaining Agreements. In most cases, if the sick leave extends beyond a certain number of days (usually 42 days in the Federation and 30 days in Republika Srpska), the financial responsibility is transferred to the Health Insurance Fund, which reimburses the employee either partially or in full.
Employees must provide a medical certificate issued by an authorized healthcare provider to qualify for paid sick leave. Employers are advised to maintain close communication with local health authorities and insurance funds to ensure compliance with reporting and reimbursement procedures.
Sick Leave
Employees in Bosnia and Herzegovina are entitled to a minimum of 20 working days of paid annual leave per year, not including public holidays. This entitlement is protected by national labor laws and may be increased based on the employee’s tenure, job classification, or through provisions in sector-specific Collective Bargaining Agreements.
Annual leave must be used within the calendar year it is accrued unless otherwise agreed between the employer and employee. In most cases, employees must work for a minimum of six consecutive months to qualify for their full annual leave entitlement. However, proportionate leave may be granted earlier depending on the terms of the employment contract.
Maternity & Paternity Leave
- Maternity Leave: Mothers are entitled to up to 12 months of maternity leave, with compensation rates varying by entity.
- Paternity Leave: Specific provisions for paternity leave may vary; employers should consult local regulations.
Public Holiday
Bosnia and Herzegovina observe the following public holidays:
- New Year’s Day
- Orthodox Christmas
- Day of Republika Srpska
- Independence Day
- Catholic Easter Sunday
- Catholic Easter Monday
- Orthodox Easter Sunday
- Orthodox Easter Monday
- International Workers’ Day
- Europe Day (optional observance)
- Day of Republika Srpska Army
- Day of Fallen Soldiers (RS Army)
- Kurban Bayram (Eid al-Adha)
- Religious Observances (e.g., Yom Kippur)
- Ramazan Bayram (Eid al-Fitr)
- All Saints’ Day
- Statehood Day
- Catholic Christmas
*Religious holidays are officially observed only by employees of the respective faith and must be requested in advance.
Social Contributions
Social security contributions are mandatory and vary by entity:
- Federation of Bosnia and Herzegovina:
- Employer: 5% (pension and disability), 4% (health insurance), 0.5% (unemployment)
- Employee: 17% (pension and disability), 12.5% (health insurance), 1.5% (unemployment)
- Republika Srpska:
- Employer: 0%
- Employee: 5% (pension and disability), 12% (health insurance), 1% (unemployment)
- Federation of Bosnia and Herzegovina:
Income Tax
A flat personal income tax rate of 10% is applied across all entities for both residence and non-residence.
Health Care
Bosnia and Herzegovina has a decentralized healthcare system, with each entity managing its own services. Mandatory health insurance contributions fund public healthcare, while private healthcare options are also available, particularly in urban areas.
Visas
Foreign nationals seeking employment in Bosnia and Herzegovina must obtain a work permit and a temporary residence permit. Requirements include:
- Valid passport
- Employment contract
- Proof of qualifications
- Medical certificate
- Proof of accommodation
- Police clearance certificate
Employers are responsible for initiating the work permit process.
13th salary
There is no statutory requirement for a 13th salary in Bosnia and Herzegovina. However, some employers may offer bonuses at their discretion.
Cultural Information
- Bosnian cuisine reflects its multicultural heritage, blending Balkan, Turkish, and Central European flavors. Meals are hearty, often centered around grilled meats, stews, and fresh breads. Signature dishes include: Ćevapi (Small grilled minced meat sausages, served with somun (flatbread) and raw onion) Burek (Flaky pastry filled with meat, cheese, spinach, or potatoes). Begova Čorba (A rich chicken and okra soup)
- Bosnia and Herzegovina is a religiously and ethnically diverse country, where Islam, Orthodox Christianity, and Catholicism coexist. Religious festivals and customs are widely observed.
- Hospitality is a cornerstone of Bosnian culture. Whether in personal or professional settings, guests are warmly welcomed—often with coffee, conversation, and home-cooked food. In business, building trust and relationships is key to long-term success. Face-to-face meetings and informal interactions are highly valued, and deals often progress only once a personal rapport has been established.