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Hiring in Bosnia and Herzegovina demands careful adherence to local regulations and practices. Key considerations for employment contracts include:
In Bosnia and Herzegovina, probationary periods are not mandatory and are established through mutual agreement. However, these periods must not exceed six months in duration.
In Bosnia and Herzegovina, the standard workweek is limited to 40 hours over five days, from Monday to Friday.
In Bosnia and Herzegovina, overtime work exceeding the standard 40-hour workweek is paid and regulated by employment contracts or collective agreements. Maximum hours for overtime and holiday work vary by region.
In Bosnia and Herzegovina, the minimum wage is BAM 596 in the Federation of Bosnia and Herzegovina and BAM 700 in Republika Srpska.
There is no statutory requirement to provide a 13th salary.
Bosnia and Herzegovina comprises two entities: the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS), along with the Brčko District (BD), administered jointly. Each region applies a flat income tax rate: 10% in the Federation of Bosnia and Herzegovina (FBiH), 8% in Republika Srpska (RS), and 10% in the Brčko District (BD).
In Bosnia and Herzegovina, all employed individuals must contribute to a mandatory pension plan. Eligibility for an old-age pension is based on reaching 65 years of age and meeting specific insurance service requirements: 15 years of service, 20 years of pension service, or 40 years of insurance service, regardless of age.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Bosnia & Herzegovina tailored to your needs.
In Bosnia and Herzegovina, employment terminations must be justified and follow a fair process. Termination can occur for reasons such as:
The minimum notice period in Bosnia and Herzegovina is 7 days for employee-initiated contract cancellations and 14 days for employer-initiated cancellations. The maximum notice period is 1 month for employee-initiated cancellations and 3 months for employer-initiated cancellations.
Severance pay in Bosnia and Herzegovina must be at least 1/3rd of the average monthly salary (based on the last 3 months) for each year of employment. The specific amount is determined by the employment agreement. Employees with a minimum of two years of service are typically eligible for severance.
Bosnia and Herzegovina observes 5 mandatory national public holidays annually:
Employers in Bosnia and Herzegovina are required to provide certain mandatory benefits.
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
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