Bosnia and Herzegovina

Employer of Record in Bosnia and Herzegovina

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Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Bosnia and Herzegovina . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Bosnia and Herzegovina.

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1. Grow your team in Bosnia and Herzegovina with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Bosnia and Herzegovina , particularly if you don't have established local relationships. You can hire employees in Bosnia and Herzegovina effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Bosnia and Herzegovina is a Balkan nation situated at the crossroads of south and southeast Europe. Sarajevo is the capital and biggest city. Bosnia and Herzegovina is bounded to the east by Serbia, to the southeast by Montenegro, and to the north and southwest by Croatia. It is not fully landlocked; towards the south, it has a 20-kilometer (12-mile)-long Adriatic Sea shoreline inside the Mediterranean that borders the town of Neum. Bosnia, the country's interior portion, has a mild continental climate with scorching summers and cold, snowy winters. The terrain of the nation is mountainous in the central and eastern areas, fairly hilly in the northwest, and mostly flat in the northeast. Herzegovina, the country's smaller, southern portion, has a Mediterranean climate and is primarily hilly.

The territory that is now Bosnia and Herzegovina has been inhabited by humans since at least the Upper Paleolithic, although evidence shows that permanent human settlements were created during the Neolithic period, including those belonging to the Butmir, Kakanj, and Vuedol cultures. Several Illyrian and Celtic civilizations settled in the region after the advent of the earliest Indo-Europeans. The nation has a rich and varied cultural, political, and social history. The ancestors of the South Slavic peoples that live in the region now came between the sixth and ninth centuries. The Banate of Bosnia was created in the 12th century, and by the 14th century, it had grown into the Kingdom of Bosnia. It was acquired by the Ottoman Empire in the mid-15th century and remained under its dominion until the late 19th century. The Ottomans introduced Islam to the area, transforming the country's cultural and social viewpoint.

The country was absorbed by the Austro-Hungarian monarchy from the late nineteenth century until World War I. Bosnia and Herzegovina was a province of the Kingdom of Yugoslavia during the interwar era. It was accorded full republic status in the newly founded Socialist Federal Republic of Yugoslavia after World War II. Following the disintegration of Yugoslavia in 1992, the republic declared independence. Following this came the Bosnian War, which lasted until late 1995 and was ended with the signing of the Dayton Agreement.

Today, the nation is home to three major ethnic groups, referred to in the constitution as "constituent peoples." Bosniaks are the most numerous of the three ethnic groups, followed by Serbs and Croats. In English, all Bosnians, regardless of ethnicity, are referred to as Bosnians. Minorities classified as "others" in the constitution include Jews, Roma, Albanians, Montenegrins, Ukrainians, and Turks.

Bosnia and Herzegovina has a bicameral legislature and a three-person president comprised of one representative from each of the three main ethnic groups. However, since the nation is primarily decentralized, the central government's role is severely constrained. It is made up of two independent organizations, the Federation of Bosnia and Herzegovina and Republika Srpska, as well as a third entity, the BrÄŤko District, which has its own municipal administration. The Federation of Bosnia and Herzegovina is also made up of ten cantons.

Bosnia and Herzegovina is a developing nation that ranks 73rd in the world in terms of human development. Industry and agriculture dominate its economy, followed by tourism and the service sector. Tourism has grown dramatically in recent years. The nation boasts a social security and a universal-healthcare system, as well as free elementary and secondary education. It belongs to the United Nations, the Organization for Security and Cooperation in Europe, the Council of Europe, the Partnership for Peace, and the Central European Free Trade Agreement; it is also a founding member of the Union for the Mediterranean, which was founded in July 2008. The nation is a candidate for European Union membership and a candidate for NATO membership since April 2010, when it got a Membership Action Plan.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Bosnia and Herzegovina is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Employees are entitled to a minimum of 20 days and a maximum of 30 days of paid leave per year. Employees who are starting their first job who have been out of employment for more than 15 months are eligible for a six-month break after serving for six months. Employees under the age of 18 and others who serve in dangerous jobs are entitled to more time off.

Public holidays

The following public holidays are observed in Bosnia-Herzegovina:

New Year’s Day

Independence Day

Roman Catholic Good Friday

Roman Catholic Easter Monday

Labor Day

Eid al-Fitr

Islamic New Year

All Saints’ Day

Statehood Day

Roman Catholic Christmas

New Year’s Day

Orthodox Christmas

Republic Day

Orthodox Good Friday

Orthodox Easter Monday

Labor Day

Victory Day

Dayton Peace Accord Day

Sick days

Employees of the FBH are entitled to seven days of paid leave for sickness or the death of a family member, while those in the RS are entitled to five days.

Maternity leave

Female employers are entitled to a year of paid maternity leave, or 18 months if they have several children. On request and with a doctor's notice, the mother may begin her leave up to 28 days before the child's birth, and she must take a minimum of 42 days in FBH or 60 days in the RS after the child's birth.

When a specialist decides that the child needs more than normal treatment, a breastfeeding mother is entitled to two absences per day to nurse her child until the child is one year old, and parents of children aged one to three years old are entitled to serve part-time, at half pay. Disabled children's parents have special protections. Normally, an employee who is pregnant and on maternity leave cannot be fired.

Paternity leave

After the mother has taken her mandatory time, the father can participate or use the mother's unused maternity leave if the parents consent. One adult has the freedom to exercise any of these rights in situations of adoption or foster parenting.

Parental leave

Other than the already mentioned terms for maternity leave, there are no other provisions in the Bosnia and Hezegovina law regarding parental leave.

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

Employees may be terminated with notice if the termination is justified for business reasons or if the employee is unable to fulfill his or her assigned responsibilities and the employer is unable to transfer or retrain the employee for a new position with reasonable effort. If either the employer or the employee commits a major criminal or breaches a contract, either party may end the employment relationship without warning. The contract-breaking party must act within 15 days of finding the reason for termination.

Notice period

Notices of termination must be in writing and give a reason for the dismissal. Employers are required by the FBH to provide written notice to employees at least 14 days in advance, unless the employee is on probation, in which case only seven days notice is required. When an employee resigns, the individual is required to give seven days' notice. Employers and employees may agree on a varied notice period, although it cannot exceed one month if the employee serves notice to the employer or three months if the company terminates the employee. The minimum notice period required by the RS is 30 days for companies and 15 days for employees. The BD provides for a 14-day notice period regardless of whether party gives notice.

Probation period

The probation period may not last longer than six months for the Federation of Bosnia and Herzegovina, and three months for the Republic of Srpska.

Severance pay

Severance pay is determined by the collective bargaining agreement, rule book, and employment contract, but cannot be less than one-third of the average monthly wage for the preceding three months for each full year of service with the employer.

6. Working hours

There is no information about the working hours for this country.

General working schedule

In Bosnia and Herzegovina, the standard workweek is 40 hours spread over five days. In some instances, a workweek may be extended. Minors are not permitted to work more than 35 hours per week, and pregnant women, mothers of children under the age of three, and single parents (including single adoptive and foster parents) may be required to work overtime only with their express written consent.

Minors, pregnant women who have reached the sixth month of their pregnancy, and mothers, adoptive and foster parents with children under the age of two are prohibited from working between the hours of 10 p.m. and 6 a.m.


In most cases, overtime is limited to ten hours per week and must be justified by an emergency or an unexpected operational need. Overtime and night work compensation is not fixed, and these increases in compensation should be documented in the employment contract.

7. Minimum wage

There is no information about the minimum wage for this country.

Bosnia and Herzegovina's minimum wage was last increased in 2020 to 520 convertible marks per month. According to Bosnia and Herzegovina compensation laws, employees must be paid at least that amount. While bonuses are not required, they are common and frequently paid at the end of the year.

8. Employee benefits

There is no information about the employee benefits for this country.

Employers pay 4% of an employee's income to health insurance in the Federation of Bosnia and Herzegovina. 12.5 percent is contributed by the employee.

In Republika Srpska, only the employee pays a 12% contribution to health insurance.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Corporate taxes in Bosnia and Herzegovina are imposed at a flat rate of 10%.

Individual income tax

Income tax is levied at a single rate of 10% on all sources of income, including wages, interest, royalties, and capital gains.

VAT, GST and sales tax

The normal rate of value-added tax in Bosnia and Herzegovina is 17%. VAT is not levied on a variety of goods and services, including medical treatment, postal services, financial services, education, and a variety of minor events.

10. VISA and work permits

There is no information about VISA and work permits for this country.

Bosnia and Herzegovina is a candidate for membership in the European Union. This implies they are not yet members of the Schengen region, despite the fact that their visa policies are quite similar to those of Bosnia and Herzegovina. All nations that are permitted to travel in the EU are also permitted to enter Bosnia & Herzegovina. Many nations outside the EU are also included on the list, bringing the total number of approved nationalities to 101 countries and jurisdictions whose people may travel without a visa and remain for up to 90 days during a 180-day period.

In terms of prerequisites, we recommend that you contact your home country's diplomatic mission or embassy and inquire before planning your trip to Bosnia and Herzegovina. While the amount of information available on the internet is immense, it is not always dependable. We suggest that you just use it as a reference. What we can tell you is that you will require a passport with at least one blank page and validity for at least 3 months after your scheduled departure date from Bosnia and Herzegovina.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

The names and addresses of the employer and employee

Whether the contract is indefinite or for a fixed term, and the length of the term where applicable

The date employment commences

The workplace

Salary details, including bonuses, benefits, and the length of the pay period

The employee’s job title and a brief job description

Working hours

Amount of annual leave

Notice periods for dismissal/termination for both the employer and the employee

Any other information regarding the terms of employment determined by a collective agreement

With Rivermate being your Employer of Record (EoR) in Bosnia and Herzegovina, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

In Bosnia and Herzegovina, employment contracts must be in writing. They might be indefinite or for a certain period of time. A contract for a fixed term must indicate the duration of the period in all three zones. The maximum term in the FBH (Federation of Bosnia and Herzegovina) is three years, and two years in the RS (Republic of Serbia) and BD (Brko District).

Probationary periods are acceptable, but must be specified in the employment contract. A probationary term may last up to six months in the FBH and BD and three months in the RS. The probationary time in the BD may be extended once for an additional six months, for a total probationary duration of 12 months.

Payment currency

Bosnian Mark (BAM)

13.Opening a subsidiary in Bosnia and Herzegovina

There is no information about the working hours for this country.

How to set up a subsidiary

If you don't mind whatever area of Bosnia and Herzegovina you operate in, we suggest investigating the many subsidiary legislation in both FBiH and RS. You may also hire a lawyer, consultant, or accountant who is knowledgeable in Bosnia and Herzegovina's subsidiary legislation. They can propose the ideal place with the best pricing, deadlines, and so on.

Following that, you must assess your company objectives for operating in the nation. Each form of subsidiary has its own Bosnia and Herzegovina subsidiary regulations that affect how you may function. For example, forming as a limited liability company (LLC) allows you to function in the nation virtually like a local firm, but incorporating as a branch does not. You have the choice of forming an LLC, a public limited company, a branch office, or a representative office, but most international enterprises prefer to form an LLC.

The following are the stages to forming your firm as an LLC:

1. Creating an establishing act that includes information and intentions

2. Notarizing a deed of incorporation

3. Registration with municipal courts and the tax administration

4. Visiting the Municipality's Economic Bureau and obtaining formal service approval

5. Opening a bank account in your home country

6. Obtaining registration from the court and the tax administration, as well as ID papers and the signatures of individuals who will have access to the account

Subsidiary laws

It's critical to understand that Bosnia and Herzegovina's subsidiary laws differ depending on the entity and territory you're in - FBiH or RS. The general requirements, on the other hand, include one director and one shareholder who may be of any nationality and do not have to reside in Bosnia and Herzegovina. To complete the registration procedure, you'll also need $1,150 in minimum paid-up share capital.

13. Why choose Rivermate as your Employer of Record / PEO in Bosnia and Herzegovina

Establishing an entity in Bosnia and Herzegovina to hire a team takes time, money, and effort. The labor law in Bosnia and Herzegovina has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Bosnia and Herzegovina simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Bosnia and Herzegovina give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Bosnia and Herzegovina via our Employer of Record (EOR) / PEO solution.

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