Hire employees in Bosnia & Herzegovina
With Nomad Global Hire PEO / EoR (Employer of Record) services, you can easily hire employees in Bosnia & Herzegovina, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Bosnia & Herzegovina
Bosnia is a small country with lots of possibilities
Employer Tax
Estimated at 12.5%
Currency
BAM, BH Convertible Marka
Available Employee Benefits
Medical insurance, Meal Vouchers
Employee Tax
Flat rate 10%
Payroll Frequency
Monthly over 12 payments
Main Universities
Univerzitet u Sarajevu, Univerzitet u Banjoj Luci, Sveuciliste u Mostaru
Capital
Sarajevo
Population
Circa 3.2 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent
Bosnia & Herzegovina is a young country bursting with trained skilled workers, and which is starting to see more innovation and investment. The Startup ecosystem is growing but is still fairly unexplored. Nonetheless Bosnia & Herzegovina is a an emerging hub for Digital Nomads, startups, talent and innovation. You can recruit directly or partner with local recruitment agencies (we can recommend you the right one), and NOMAD will manage the local employment for your new employees
Payroll, Benefits & Tax in Bosnia and Herzegovina
- Minimum Wage : 912 BAM per Month
- Employer Tax in Bosnia & Herzegovina is usually 12.48%
- This includes Pension, Unemployment, Health insurance, and other taxes
- Employee Tax in Bosnia & Herzegovina is at a flat rate of 10% although some personal circumstances can change this
- Overtime in Bosnia & Herzegovina is authorized under certain circumstances (Contracts and amendments). Normal working day is 8 hours or 40 hours a week
- Payroll Frequency in Bosnia & Herzegovina is Monthly over 12 months
- Bank holidays: there are 20 national days in 2023 in Bosnia & Herzegovina although those do not apply in all the country so the average is more 11 days per year
- Termination process in Bosnia & Herzegovina is quite straightforward, see below
- Notice period is depending on the contractual agreements, and can go from 14 days 3 months on the employer side
- It is important to note that Bosnia & Herzegovina has different laws, leave policies and public holidays, depending on location and religion. It is divided between the full of B&H, the Republic Srpska, the Federation of B&H and the Brcko District.
- Maternity Leave in Bosnia & Herzegovina is dependent on the company’s own policies but has to be for a minimum of 42 days to a maximum of 365 days. 28 of those days must be taken by law before the birth of the child. During this time, leave is paid by the local competent Social Security at different levels.
- Paternity Leave is complicated in Bosnia & Herzegovina as the father would actually use the days not used by the mother on the condition that the latest gives up on those days.
- Parental Leave: There is no Parental leave in Bosnia & Herzegovina
- Sick Leave is covered and paid by the employer at 80% during the first 6 weeks.
- Statutory Leave in Bosnia & Herzegovina is 20 days minimum per year and employees can start booking days only after 6 months employment
The Bosnian Labor Code is setting the framework for employment in Bosnia & Herzegovina. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.
Onboarding and Termination in Bosnia Herzegovina
- Probation period are not mandatory under Bosnian Labour Law
- Probation period in Bosnia & Herzegovina however can be of a maximum of 6 months or 180 days, and therefor cannot be extended further
- You can hire through Fixed Term Contracts, Indefinite / Permanent contract or BtoB contracts
- Employment Contracts are drafted in the local official language (Bosnian/CRoatian/Serbian) but can also be in English (but then has to be both at the same time)
- Termination is Bosnia & Herzegovina is generally a straightforward process and covers a lot of reasons and options. Termination can occur as such:
- By mutual agreement
- By resignation of the employee
- By expiration of contract
- By the employer on grounds of unsatisfactory performance, disciplinary dismissal, or reduction of work or end of the activity for example
- It is however always advised to reach a Mutual Agreement to validate a Termination in Bosnia & Herzegovina
- The minimum notice period in Bosnia & Herzegovina is a minimum of 7 days for the employee resigning or 14 days if the employer terminates the contract. However this is usually dependent on the contractual agreement between employee and employer. The Maximum however is 1 month on the employee side and 3 months on the employer side.
- Severance payments in Bosnia & Herzegovina are mandatory for indefinite contract and if the relationship has been over 2 years. It is calculated on the basis of 1/3rd of the average monthly salary for each year of employment (so someone hired for 3 years on a permanent/Indefinite contract would get 1 month salary severance payment)
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee. We offer very competitive fees!
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An additional Deposit of 1 full month salary cost will be required
Estimated Employer tax costs
Employer Tax in Bosnia & Herzegovina is estimated around 12.48%
- Pension fund insurance
- Health insurance
- Unemployment insurance
- Others
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