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Country hiring guide

Hiring in Bosnia and Herzegovina ๐Ÿ‡ง๐Ÿ‡ฆ

Two entities (FBiH, RS) with distinct labour and contribution rules. Employer on-costs run ~6% (FBiH) on top of gross salary. Here is what to know before your first Bosnia and Herzegovina hire.

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Capital citySarajevo
CurrencyConvertible mark (BAM)
LanguagesBosnian, Croatian, Serbian
Population~3.2 million
Payroll frequencyMonthly; 13th salary not mandatory
VAT standard rate17% (PDV)
Employer burden*~6% (FBiH) of gross
TGTC flat EOR fee$499/mo ยท Tier B
Overview

Employing in Bosnia and Herzegovina

Employment in Bosnia and Herzegovina runs under its national labour code, which sets the floor for wages, working hours, leave, and notice. Here are the essentials before you make an offer.

Minimum wage

  • FBiH: BAM 1,000/month (2025)
  • RS: tiered ~BAM 900-1,100 net by skill

Payroll cycle & extra pay

  • Monthly; taxes due by 10th of following month
  • No mandatory 13th salary

Public holidays

  • Varies by entity/canton, ~4-11 days*
  • Few nationwide; most set at entity level

Onboarding & probation

  • Probation max 6 months (FBiH), 3 months (RS)
Employer costs

What you pay on top of salary

Employer on-costs in Bosnia and Herzegovina run ~6% (FBiH) of gross salary. FBiH employer pays ~6%; in Republika Srpska all contributions borne by employee.

Employer contribution*Rate
Pension & disability (FBiH)2.5%
Health insurance (FBiH)2%
Unemployment (FBiH)0.5%
Disaster & water charges (FBiH)1%
Republika Srpska employer0%

Passed through at cost

These statutory costs are paid at cost on top of TGTC's flat $499/mo fee, so you always see the real employer cost, not a marked-up percentage.

Employee-side taxes

Employees pay their own income tax and social-security share, withheld at source. Under an EOR, TGTC runs that payroll withholding for you.

Types of leave

Statutory leave in Bosnia and Herzegovina

Annual leave

  • Minimum 20 working days

Maternity & parental leave

  • Up to 1 year; pay 50-100% (varies by entity/canton)

Sick leave

  • FBiH: first 42 days at 80% by employer
  • RS: first month at 100% by employer

Other leave

  • Paid leave for marriage, birth, bereavement
Employment termination

Ending employment in Bosnia and Herzegovina

Notice

  • FBiH ~14 days; RS ~30 days (employer-initiated)

Severance

  • Min 1/3 monthly salary per year; cap 6 months

Probation

  • Short notice (~7 days) during probation

Contractor risk

  • Misclassification triggers back tax and contributions

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Hire in Bosnia and Herzegovina without setting up an entity

TGTC employs your hire in Bosnia and Herzegovina on a compliant local contract, runs payroll and benefits, and passes statutory costs through at cost. One invoice, flat $499 per month.

Get a Bosnia and Herzegovina quote