Employer of Record in Bosnia and Herzegovina

Employer of Record (EOR) in Bosnia and Herzegovina with Brain Source International helps you save time and reduce costs by enabling you to hire locally without setting up a legal entity. Our solution takes care of onboarding, payroll, immigration, and employee benefits, allowing you to build your team quickly and expand your business in full compliance with Bosnian labor regulations.

What is an Employer of Record in Bosnia and Herzegovina?

An Employer of Record (EOR) in Bosnia and Herzegovina is a trusted partner that legally employs your staff on your behalf. Acting as the official employer of record, the EOR manages payroll, benefits, taxes, contracts, and ensures compliance with Bosnian labor regulations.

By partnering with an EOR, you can hire and manage employees in Bosnia and Herzegovina without setting up a local entity or navigating the complexities of local employment law. This enables your company to expand faster, reduce costs, and stay fully compliant while focusing on business growth.

General Information

• Currency: Bosnia-Herzegovina Convertible Marka (BAM)
• Payroll Frequency: Monthly
• Capital: Sarajevo
• Fiscal Year: 1 January – 31 December

Employer of Record (EOR) in Bosnia and Herzegovina: Key Aspects of the Bosnian Labour Code

Minimum Wage

General: The minimum wage in the Federation of Bosnia and Herzegovina is BAM 900 per month.

Payroll

Payroll Cycle: In Bosnia and Herzegovina the payroll cycle is generally monthly.

13th Salary

There is no statutory requirement to provide a 13th salary.

Taxation in Bosnia and Herzegovina

Would you like to know the approximate cost of employment in Bosnia and Herzegovina?

Working Hours

General: The standard workweek in the Federation of Bosnia and Herzegovina is capped at 40 hours, spread over five days (Monday to Friday).

In the Federation of Bosnia and Herzegovina, a woman who returns to work full-time after maternity leave is entitled to take two breaks of one hour each per day for breastfeeding until the child turns one year old.

In the Republic of Srpska, if a woman resumes work before completing her full maternity leave (12 or 18 months), she is entitled to an additional 60 minutes of break time during working hours to breastfeed the child.

In the District of Brcko, a woman who returns to her regular work hours after maternity leave is allowed two breaks of one hour each per day for breastfeeding, which are considered as part of her normal working hours until the child reaches one year of age.

Overtime: All work beyond the standard weekly hours is considered overtime and is governed by employment contracts or collective agreements. The regulations regarding overtime vary by region as follows:

• Federation of Bosnia and Herzegovina: Pregnant women, mothers, adoptive parents with children up to three years old, or self-sustaining parents or adoptive parents with children up to six years old may work overtime if they provide a written statement of voluntary consent.
• Republic of Srpska: Overtime work is not allowed for pregnant women, mothers of children up to three years old, or single parents or single adoptive parents of children under six years old, unless they provide a written statement of voluntary consent.
• District of Brcko: Pregnant women, mothers, adoptive parents with children up to one year old, or single parents or single adoptive parents with children up to two years old may work overtime if they agree in writing to do so.

According to the collective agreement for Bosnia & Herzegovina, overtime is paid at 125% of the net hourly rate, work on weekly rest days is paid at least 115% of the net hourly rate, and work on national holidays is paid at 40% of the net hourly rate.

In the Republic of Srpska, overtime work is paid at 130% of the salary rate, while work on public holidays and other non-working days as stipulated by law is paid at 150% of the salary rate.

Leave

Annual Leave (Vacation):

Employees are entitled to 20 working days of paid annual leave, with a maximum of 30 working days as specified in the employment contract and labor law.

Annual leave can be taken in two segments. The first segment must consist of at least 12 working days within the calendar year. Any additional leave days beyond these 12 can be carried over and used by June 30 of the following year. Employees are also allowed up to four days off per calendar year for religious or traditional observances, with two of these days paid.

Public Holidays

Sick Days

All sick leave days are paid. In the Republic of Srpska, the employer covers the first month of sick leave, after which Social Security assumes responsibility. In the Federation of Bosnia and Herzegovina, the employer pays for the first 42 days of sick leave, with the Social Security fund covering subsequent days.

A sick note must be submitted as soon as possible as proof of illness, even if the sick leave is for just one day.

Maternity Leave

Female employees are generally entitled to up to twelve months of maternity leave, with the following minimum requirements:

• Federation of Bosnia and Herzegovina: A woman must take at least 42 days of maternity leave following childbirth.
• Republic of Srpska: A woman cannot return to work before 60 days have passed after childbirth.
• District of Brcko: A woman may take up to seven days before the expected delivery date and 42 days after childbirth.

After completing maternity leave, the employee may work part-time until the child is two years old, or the father may choose to work part-time if the mother returns to full-time work. Maternity pay ranges from 50% to 80% of the regular wage, depending on cantonal regulations in the Federation of Bosnia and Herzegovina.

In the Republic of Srpska and the District of Brcko, employees are also entitled to an additional six months of leave if they have twins or for every child beyond the second, with 100% of their regular salary compensation during this period.

Paternity Leave

In the Federation of Bosnia and Herzegovina, a father is entitled to up to seven working days of unpaid leave per calendar year. In the Republic of Srpska and the District of Brcko, the entitlement is up to three working days of unpaid leave per calendar year.

Parental Leave

There is no other parental leave in Federation of Bosnia and Herzegovina.