Hire employees in Bosnia and Herzegovina No entity needed.
Usually, to hire in Bosnia and Herzegovina, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Bosnia and Herzegovina also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Bosnia and Herzegovina quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
Currency: Bosnia-Herzegovina Convertible Marka
Official languages: Bosnian, Serbian & Croatian
Payroll cycle: Monthly
Paid Time Off
Employees are entitled to 20 working days of paid time off. Paid time off is granted after 6 months of working in the company. The maximum possible leave is 30 working days.
Bosnia and Herzegovina celebrates 12 public holidays.
- New Year's Day 1st celebration
- New Year's Day 2nd celebration
- Republic Day
- Independence Day
- Brcko District Establishment Day
- Labor Day
- Victory Day over fascism
- Day of the Establishment of the General Framework Agreement for Peace in BiH
- Statehood Day
Employer cost range is approximately 12% of employee's salary.
Individual Income Tax
Individual income tax range will vary and depend on the depend members of a family. The average is 32%.
Employment contract details
Agreements must be in 1 local language, Bosnian, Croatian or Serbian and can also be bilingual. The contract needs to mention place of residence, education level, scope of work, place of work and duration of the employment among others.
Maximum probation period is 6 months. Probation period is not mandatory.
Minimum Wage Requirements
The minimum wage in Bosnia and Herzegovina is a gross salary BAM 616,00 per month.
Maximum working hours and overtime
Standard working hours are 8 hours per day and 40 hours per week from Monday to Friday.
Overtime is paid accordingly the amount of hours the employee worked extra time per day. The calculation is by the rate of 25% above the hourly salary.
- Maternity leave: employees are entitled to 42 days of leave, starting 28 days before the due date. Payments will be covered by the Center for Social Work in part. However it is common practice for the employer to cover the remaining part of the salary so the employee can receive a full salary during leave. Maternity leave can be extended up to a year, and the decision will be done by the Center for Social Work.
- Paternity leave: employees are entitled to 42 days of leave, starting after the maternity leave ends. Payments will be covered by the Center for Social Work in part. However it is common practice for the employer to cover the remaining part of the salary so the employee can receive a full salary during leave. Paternity leave can be extended up to a year, and the decision will be done by the Center for Social Work. The extension will be unpaid.
Employees are entitled up to 42 days of sick leave per year paid by the employer. During this leave, the employer can reduce the salary by 20%. Since day 42, insurance will refund part of the salary. The amount to be refunded will depend on the residence of the employee as each Canton has different regulations.
Termination requirements for employees in
Terminations can occur by mutual agreement between the employer and employee; once the employee completes 65 of age and has 20 years of insurance record, unless the employer and employee agree otherwise; by cancellation of the employer or the employee; by expiry of the period for which a contract has been concluded for a definite period by the decision of the competent court resulting in the termination of employment.
Severance payments will depend on 4 cumulative conditions:
- An employment contract has been concluded for an indefinite period of time;
- The employer terminates the employment contract;
- The employment relationship lasted at least two years of uninterrupted work before dismissal;
- The contract is not terminated due to breach of the employment obligation or due to non-fulfillment of obligations under the employment contract by the employee
Minimum notice period is 14 days and maximum notice period is 3 months. Notice period during probation period is 7 days.
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