River in Sarajevo
Remote’s guide to employing in

Bosnia and Herzegovina
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Make employment in Bosnia and Herzegovina easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Bosnia and Herzegovina, all in one easy-to-use platform.

  • Capital City


  • Currency

    Bosnia and Herzegovina convertible mark (KM, BAM)

  • Languages

    Bosnian, Croatian, and Serbian

  • Population size


  • Remote-Owned Local Entity

Services available in this country:
Global Employment ServicesContractor Management

Facts & Stats

Bosnia and Herzegovina Map Illustration
  • Capital City


  • Currency

    Bosnia and Herzegovina convertible mark (KM, BAM)

  • Languages

    Bosnian, Croatian, and Serbian

  • Population size


  • Ease of doing business


  • Cost of living index

    38.56 (2021)

  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    2.7% (2019)

Bosnia and Herzegovina is a republic in Southeast Europe that’s home to the continent’s last remaining jungle, a population obsessed with bosanska kafa — Bosnian coffee, and the world’s only lunar clock.

The newly formed heart-shaped nation is based on liberal policies that have contributed to strong economic growth in agriculture and a burgeoning service industry.

Currently, the nation’s politics has it split into three constituent republics: the Federation of Bosnia and Herzegovina (FBiH), Republika Srpska (RS), and Brčko District, so our guide to employing in Bosnia will often feature three different sets of policies in force for the districts across the nation.

Grow your team in Bosnia and Herzegovina with Remote

Looking to employ workers in Bosnia and Herzegovina? Companies hiring in Bosnia and Herzegovina must either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.

Remote can employ team members in Bosnia and Herzegovina and keep you compliant at all times. Remote can hire, onboard, and pay your Bosnian team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Bosnia and Herzegovina. Sign up now to get started or talk to an expert for more details.

Risks of misclassification

Bosnia and Herzegovina, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Bosnia and Herzegovina may lead to fines and penalties for the offending company.

Employing in Bosnia and Herzegovina

Provisions for employee protections and workers’ rights are spelled out in the Bosnian Constitution as well as several government statutes, such as the Labour Law of 1999, and the Employment Law of the Federation of Bosnia and Herzegovina. Employees in Bosnia and Herzegovina generally enjoy protection against discrimination based on age and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Bosnia.

3 Public holidays

Sunday, January 1, 20231New Year's Day
Monday, January 2, 20232New Year Holiday
Monday, May 1, 20233Labour Day

Competitive benefits package in Bosnia and Herzegovina

At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and your company has the localized expertise needed to attract and keep the best global talent.

Our benefits packages in Bosnia and Herzegovina are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Bosnia and Herzegovina

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Bosnia and Herzegovina.

  • 6%

    Pensions & invalid insurance

  • 4%

    Health insurance

  • 0.5%

    Unemployment insurance

Federation of Bosnia and Herzegovina

Types of leave

Across the nation, employees are limited to 20 days of paid leave annually, while workers in the Federation of Bosnia and Herzegovina (FBiH) can enjoy up to 30 days of paid vacation every year.

Employment termination

Termination process

Employee contracts can be terminated with written notice provided a reasonable justification is provided.

Notice period

Notice periods can range from at least 14 days to a maximum of three months.

Severance pay

Unless they’re let go for misconduct, employees are typically entitled to a severance package determined by collective bargaining or whatever is stipulated in the employment contract.

Severance benefits cannot be less than a third of an employee’s wages for each year they were employed.

Probation periods

Probation can last between 1 and 6 months.