Employer of Record Bosnia and Herzegovina
Hire staff and expand your business in Bosnia and Herzegovina with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Bosnia and Herzegovina designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Bosnia and Herzegovina. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
Employer of Record in Bosnia and Herzegovina
A Brief Guide to Bosnia and Herzegovina
Bosnia and Herzegovina is a country in Southeastern Europe, known for its rich history, diverse culture, and beautiful landscapes. It has a parliamentary system of government and is a member of the United Nations and various international organizations. The nation is working towards membership in the European Union and has a growing economy.
|Official Language||Bosnian, Croatian, Serbian|
|Area||51197 square kilometers|
|Population||Approximately 3.5 million|
|Currency||Bosnia and Herzegovina convertible mark (BAM)|
|Major Cities||Banja Luka, Tuzla, Zenica, Mostar|
|GDP||$20.05 billion USD|
|Human Development Index (HDI)||0.769 (high)|
|Major Industries||Energy, mining, automotive, agriculture, and tourism diamond processing|
Business Culture in Bosnia and Herzegovina
Business culture in Bosnia and Herzegovina values professionalism, relationship-building, and respect for hierarchy. Punctuality is important, as well as appropriate attire and courtesy. Decisions are often made by top-level executives, and personal connections play a significant role. Engaging in small talk and socializing is common before discussing business matters.
Being well-prepared and demonstrating expertise is crucial when conducting business in Bosnia and Herzegovina. A proper work-life balance is appreciated, and adhering to business etiquette, such as exchanging business cards and using proper titles, is expected.
Payroll and Taxes
Payroll and Taxes in Bosnia and Herzegovina
There is no statutory requirement to pay a 13/14th month in Bosnia and Herzegovina.
Income tax rates in Bosnia and Herzegovina are flat:
Employer costs in Bosnia and Herzegovina are relatively simple. Employers are responsible for:
|Employer Costs in Bosnia and Herzegovina|
Approximate % of Gross Salary
Social Security Contributions
Employment Law in Bosnia and Herzegovina
Employment Contracts: In Bosnia and Herzegovina, employment contracts can be written or verbal, but written contracts are recommended to avoid misunderstandings. Contracts should outline essential details, such as employment duration, working hours, salary, and termination notice periods.
Working Hours: The standard maximum working time in Bosnia and Herzegovina is 40 hours per week or 8 hours per day. Overtime work is regulated, with compensation for extra hours.
Employees Rights: Employees in Bosnia and Herzegovina have various rights, such as the right to equal treatment, protection against discrimination, and freedom of association. Regulations address working conditions, workplace safety, and employee representation.
Leave: Employees in Bosnia and Herzegovina are entitled to various types of leave, including paid annual leave (minimum of 20 working days per year), maternity leave, paternity leave, sick leave, and family care leave.
Termination: Termination of employment in Bosnia and Herzegovina requires proper notice, which varies depending on the length of employment. Unjustified termination can lead to claims for damages or reinstatement.
Bosnia and Herzegovina Public Holidays
|New Year’s Day||1st – 2nd January|
|Orthodox Christmas||7th January|
|Independence Day||1st March|
|Labor Day||1st – 2nd May|
|All Saints’ Day||1st November|
|Day of Remembrance||9th – 11th November|
|Statehood Day||25th November|
|Catholic Christmas||25th December|
|Orthodox New Year||14th January|
Pension and Healthcare
Bosnia and Herzegovina Pensions
In Bosnia and Herzegovina, there is a mandatory state pension system funded by social security contributions from both employees and employers. The contribution rates, as a percentage of an employee’s gross salary, are as follows:
- Employees: 6% for pension and disability insurance
- Employers: 6% for pension and disability insurance
These percentages may vary slightly depending on the specific entity or region within Bosnia and Herzegovina, as the country is divided into two entities: the Federation of Bosnia and Herzegovina and the Republika Srpska.
Healthcare in Bosnia and Herzegovina
Bosnia and Herzegovina has a public healthcare system that provides basic medical services to its residents. The system is funded through social health insurance contributions from employees and employers, as well as government subsidies and general tax revenues.
Work Permits in Bosnia and Herzegovina
In Bosnia and Herzegovina, immigration is a regulated process, just like in any other country. To immigrate, you’ll generally need to apply for a specific type of visa or residency permit based on your purpose for moving, such as work, study, or family reunification.
Work visas typically require a job offer from a Bosnian employer, while student visas require enrollment in a recognized educational institution. Family reunification visas may be available to those who have family members living in Bosnia and Herzegovina.
To obtain a residency permit, you’ll need to meet certain criteria, such as providing proof of sufficient financial resources, having valid health insurance, and passing a background check. Since the official languages in Bosnia and Herzegovina are Bosnian, Croatian, and Serbian, learning one or more of these languages may be helpful for navigating the immigration process and integrating into the local community.
Once you’ve obtained a residency permit, you’ll need to renew it periodically and adhere to the specific conditions tied to your permit. If you’re interested in becoming a permanent resident or even a citizen, you’ll have to follow additional steps and meet certain requirements, such as living in Bosnia and Herzegovina for a specified number of years.
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Bosnia and Herzegovina Employer of Record Benefits
When you choose Agility EOR to expand in Bosnia and Herzegovina, we guarantee an employer of record service tailored to the needs of your business