Bosnia and Herzegovina’s cost-effective labor, skilled workforce, and strategic location make it an ideal outsourcing destination. Employers looking to hire in the area may wonder, “What is the average salary in Bosnia and Herzegovina?” This information will help them develop a fair hiring offer. 

The average monthly salary in Bosnia and Herzegovina is 1430 Bosnia-Herzegovina Con (BAM), about USD 832. However, wages vary by profession, industry, experience, education, and location. Comparing wages in the country to earnings around the world provides additional insight. 

This guide will explore all aspects of salaries in Bosnia and Herzegovina to prepare you for your hiring journey. 

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What is the Average Salary in Bosnia and Herzegovina?

The average salary in Bosnia and Herzegovina is 1430 BAM, about $832. The country’s low wages are due to its consumption-based economy, which does not prioritize productivity. 

However, a popular ‘envelope wages’ culture makes it difficult to estimate wages. Many employers pay their employees ‘in an envelope’ to avoid taxes, so take-home pay in the country is likely higher than statistics show. 

Bosnia and Herzegovina Median Income

The median salary in Bosnia and Herzegovina is 1506 BAM. Half the country’s population earns higher wages, and the other half earns less.

Salary Range

The salary range spans from the country’s lowest to the highest wages. In Bosnia and Herzegovina, low earners make around 1100 BAM, about $640, while high earners make closer to 3813 BAM, about $2219.

Salary Comparisons in Bosnia and Herzegovina

Average salary provides insight, but you must consider how wages vary by industry, position, education, experience, and location. The following sections will explore these factors to provide additional insight. 

Salary by Position

The following salary comparison chart reveals how wages vary by position. 

PositionAverage Monthly Salary (BAM)
Accountant2,281
IT Business Analyst1,481
Civil Engineer2,580
Finance Manager1,785
Agricultural Technician1,190
Fast Food Worker1,190
Administrative Assistant1,317
Administrative Worker1,981
Machine Fitter2,081

Average Wage in Bosnia and Herzegovina Based on Education

Education can positively impact wages in Bosnia and Herzegovina. However, the country is plagued by a wage mismatch. Workers who attain high levels of education may struggle to find jobs suited to their degrees. 

Statistics show that overeducated workers earn 13% less than their adequately educated counterparts, while undereducated workers earn 10% less. Experts feel that undereducated workers may work harder than their overeducated counterparts, supporting the percentage outcomes.

Salary Comparison by Experience

Experience also plays a role in wage determination, as experienced workers earn more than entry-level workers, and employees become eligible for raises with tenure. This situation generally rings true in Bosnia. However, in some positions, older workers, presumably with more experience, may earn less. 

For example, administrative assistants aged 25-34 earn an average salary of USD 767, while 35-44-year-olds in the same position earn an average salary of $638. 

Salary Comparison by Location

Employees will also see differences in wages based on their location. Workers in urban areas generally earn more than rural workers due to higher living costs and proximity to large companies offering high-paying job opportunities. 

For example, Sarajevo, the capital city, and other major cities like Mostar and Tuzla have more robust economies than smaller towns in rural areas. Additionally, the Federation of Bosnia and Herzegovina and the Republic of Srpska have their own regulations and systems, which could impact salaries. 

However, because the country relies so much on agriculture, programs ensure that rural farmers can earn decent wages. 

How Much is Minimum Wage in Bosnia and Herzegovina?

The minimum wage in Bosnia is 1000 BAM, about $582. The new rate went into effect on Jan. 1, 2025, rising from the previous 900 BAM. The minimum wage in the Republic of Srpska is also 1000 BAM, but it sets a higher minimum of 1300 BAM for jobs requiring at least four years of education. 

The country’s minimum wage is not far from its average salary, which is generally good. However, it has led to additional layoffs, as many employers cannot afford to pay such high wages. They are replacing workers with automation. 

Average Salary in Bosnia and Herzegovina vs. the Rest of the World

The following charts will compare wages in Bosnia and Herzegovina to earnings in developed, developing, and undeveloped countries to provide additional insight. 

Bosnia and Herzegovina vs. Developed Countries

CountryAverage SalaryComparison to Average Bosnia and Herzegovina Salary
Japan379,434 Yen (≈ $2,635)– 225%
United Kingdom€3,000 (≈ $3,116)– 287%
Norway50,790 NOK (≈ $4,700)– 487%
Germany€4,300 (≈ $4,467)– 462%
Austria€3,500 (≈ $3,636)– 350%

Bosnia and Herzegovina vs. Developing Countries

CountryAverage SalaryComparison to Average Bosnia and Herzegovina Salary
Romania4,000 RON (≈ $835)– 0%
Russia73,709 Rubles (≈ $700)14%
Albania€1,500 (≈ $1,550)– 93%
Kazakhstan342,082 Tenge (≈ $645)23%
Ukraine18,000 Hryvnia (≈ $500)60%

Bosnia and Herzegovina vs. Undeveloped Countries

CountryAverage SalaryComparison to Average Bosnia and Herzegovina Salary
Afghanistan30,000 Afghanis (≈ $419)90%
Philippines18,423 PHP (≈ $875)– 9%
Cambodia1,000,027 KHR (≈ $250)220%
Egypt13,244 EGP (≈ $263)107%
Pakistan45,000 PKR (≈ $150)433%

Bosnia and Herzegovina is a developing country with an upper-middle income economy and a high Human Development Index. However, it still faces slow growth and financial challenges. Its service sector is its largest employer, resulting in low-paying job opportunities. 

Although the country faces internal challenges, workers can benefit from outsourcing opportunities. Bosnia and Herzegovina’s low-cost labor and highly skilled workforce make it an ideal destination for remote work partnerships. Its strategic location in the Balkans offers nearshoring opportunities for companies targeting the European market. 

What are the Most Common Outsourced Industries in Bosnia and Herzegovina?

Employers who hire in the country will see the most benefits when focusing on the following industries: 

Manufacturing

Manufacturing contributes significantly to Bosnia and Herzegovina’s economy. It is a popular outsourcing destination for wood and steel goods, including furniture and car seats. The country’s products are commonly exported throughout the EU, with major partners such as Germany, Croatia, and Serbia. 

IT Services

Bosnia and Herzegovina offers a growing IT industry with an increasing demand for outsourcing. The industry focuses on software development, cloud computing, and cybersecurity. The government supports the sector with tax incentives. 

An IT business analyst in Bosnia earns about 1481 BAM, about $861, while their American counterparts earn closer to $8000 monthly. This leads to significant cost savings for employers who outsource. 

Agriculture

Bosnia and Herzegovina offer large areas of fertile land and diverse climates suitable for agricultural development. Major crops include corn, wheat, potatoes, fruits, and vegetables. Livestock also plays a significant role in the farming industry. 

In addition to exporting crops, Bosnia can also be a good destination for outsourcing agricultural tasks. 

Conclusion

Bosnia and Herzegovina’s low average salaries lead to affordable labor and cost savings for outsourcing companies. Organizations that form remote partnerships in the area can benefit from reduced expenses and top-tier products and services that may make them leaders in their field. Meanwhile, they help Bosnian workers overcome poverty, creating beneficial situations for everyone involved.