Payroll and Benefits Guide - Bosnia and Hezegovina

Bosnia and Hezegovina
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Currency

Bosnia-Herzegovina Convertible Marka

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Capital

Sarajevo
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Employer Taxes

10.50%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

The country has three official languages: Bosnian, Croatian, and Serbian.

The region of Herzegovina is known for its karst landscape such as limestone formations, caves, and underground rivers.

Football (soccer) is a widely popular sport in Bosnia and Herzegovina.

Bosnia and Herzegovina is known for its coffee culture.

The country has numerous natural wonders.

Bosnia and Herzegovina has a rich cultural heritage.

Bosnia

Contributions

Employee Payroll Tax

Social Security -Pension and Invalid insurance17.00%
Social Security -Health Insurance12.50
Social Security – Unemployment Insurance1.5%

Employer Payroll Tax

Social Security -Pension and Invalid insurance6.00%
Social Security -Health Insurance4.00%
Social Security -Unemployment Insurance0.5%

Payroll

Payroll Cycle

The payroll cycle is typically sent out once per month.

13th Salary

The payment of a 13th salary is not mandated by law.

Work Hours and Week

The typical workweek is only 40 hours long and consists of five days (Monday through Friday).

Overtime

The employment contract and collective agreements govern all work that is performed in excess of the required weekly hours.
Bosnia

Leave

Paid Time Off

According to the employment contract and labor law, employees are entitled to 20 working days of paid annual leave, but not more than 30 working days.

Public Holidays

There are 21 public holidays.

Sick Days

Every sick day is paid. Employers are responsible for covering the first month of sick leave; after that, Social Security takes over. Even if the sick leave was only for one day, a sick note must be given as soon as possible as proof of illness.

Maternity Leave

Employees who are pregnant are typically entitled to a minimum of five days of maternity leave, up to a maximum of twelve months.

Paternity Leave

Up to seven working days of unpaid leave per year are available to fathers.

Parental Leave

Up to seven working days of unpaid time off per year

Termination

Termination Process

Employers may end a fixed-term contract by providing justification. It calls for written notification and an explanation of the termination.

Notice Period

Employees must provide a minimum of seven days’ notice and a maximum of 30 days’ notice before leaving their position. Employers are required to provide a notice period of at least 14 days and up to 3 months.

Severance Pay

A severance payment is due to an employee who has worked for the same company for at least two years; the amount is typically set forth in the collective bargaining agreement.

Probation Period

Probation Period

The trial period can last no more than six months.

Immigration

Foreign nationals wishing to visit Bosnia for 90 days during any 180-day period must obtain a short-stay visa. It is possible to get this visa for one, two, or numerous entries.

VAT

The standard VAT rate in Bosnia and Herzegovina is 17%, and the VAT regime is uniform throughout the nation. In Bosnia and Herzegovina, there is no discounted VAT rate.