Employee Benefits in Bosnia and Herzegovina

Read our comprehensive guide to employee benefits in Bosnia and Herzegovina to ensure your hiring strategies are effective and aligned with local labor laws.

Bosnia and Herzegovina Services

Content

7 minutes read

Bosnia and Herzegovina Labor Law

Mandatory Employee Benefits in Bosnia and Herzegovina

Supplementary Employee Benefits in Bosnia and Herzegovina

Optimize Employee Benefits with Remote People

Bosnia and Herzegovina is a country in Southeastern Europe, bordered by Croatia, Serbia, and Montenegro, plus the Adriatic Sea. Despite having a growing GDP of 28.34 billion US dollars (2024), Bosnia and Herzegovina has a developing, transitional economy that is heavily reliant on services, construction, and agriculture, with a small workforce of 1.35 million people (2024).

Companies may choose to hire in Bosnia and Herzegovina due to an educated workforce that is strategically placed in Southeast Europe, providing easy access to neighbouring markets within the Balkans. They have a well-established legal framework, and labour costs tend to be lower than in other EU countries.

This help guide will provide companies seeking new workers in Bosnia and Herzegovina with the information they need to legally provide all mandatory benefits, plus information on the key labor laws in this country. We’ll also detail how Remote People can assist companies with Employer of Record services to streamline employment.

Bosnia and Herzegovina Labor Law

The main labor law in Bosnia and Herzegovina that provides a legal framework for employment relations is the Labour Law of the Federation of Bosnia and Herzegovina (Labour Laws Official Gazette FB&H Nos. 26/16, 89/18, etc). This provides information to employers and employees regarding working hours, contracts, overtime, and leave entitlement.

Other relevant legal acts that provide further information on labor laws in Bosnia and Herzegovina include:

Labour Law of Republika Srpska (RS) (Official Gazette RS Nos. 1/16, 66/18, etc.)
Law on Mediating in Employment and Social Security of Unemployed Persons (FB&H)
Laws on Inspections, Peaceful Resolution of Labour Disputes, Strikes, etc.

We’d advise that companies employing in Bosnia and Herzegovina seek legal advice when hiring in this country. This is to ensure that employment practices adhere to the latest legislation set by local labor laws and simplify the process of hiring in Bosnia and Herzegovina.

Mandatory Employee Benefits in Bosnia and Herzegovina

There is a range of mandatory employee benefits in Bosnia and Herzegovina that employers must provide when hiring in this country.

We’ve detailed the main mandatory benefits in the sections below.

Social Security Contributions

The Federation of Bosnia and Herzegovina (FBiH) operates a Social Security System that aims to assist workers and residents in the event of illness, retirement, and unemployment.

The rates of social security in Bosnia and Herzegovina are as follows:

Contributor	Pension & Invalid Insurance	Health Insurance	Unemployment Insurance
Employee	17%	12.5%	1.5%
Employer	2.5%	2%	0.5%

Annual Paid Leave

Employees in Bosnia and Herzegovina are entitled to a minimum of 20 working days of annual leave per year, which can vary by region and experience.

Leave can be split into different parts; however, the first portion of leave taken must last for at least 12 consecutive days. It can be carried over to the following year, but must be used by the 30th of June of the following year.

Working Hours

Full-time employees in Bosnia and Herzegovina typically work a maximum of 40 hours per week, commonly distributed over 5 or 6 working days. Minors cannot work over 35 hours per week, and part-time employees are considered any workers that are working hours less than the normal full-time hours. Employees working over 6 hours per day are entitled to a rest break.

Overtime Pay

Overtime is generally only allowed in emergency situations like sudden high workloads or natural disasters, and is limited to 10 hours per week. Pay for overtime hours varies depending on region, but is usually paid at a minimum rate of 125% an employee’s normal wage. Minors are not permitted to work overtime.

Public Holiday Leave

Various public holidays in Bosnia and Herzegovina permit employees to take a paid day off. Many public holidays are optional; we’ve detailed the public holidays in Bosnia and Herzegovina below and have noted which are normal public holidays and which are optional holidays.

January 1: New Year’s Day (Public Holiday)
January 2: New Year’s (Day 2) (Public Holiday)
January 6: Orthodox Christmas Eve (Optional Holiday)
January 7: Orthodox Christmas Day (Optional Holiday)
March 1: Independence Day (Public Holiday)
March 2: Day off for Independence Day (Public Holiday)
March 20 (Date Varies): Eid al-Fitr (Optional Holiday)
April 3 (Date Varies): Good Friday (Optional Holiday)
April 5 (Date Varies): Easter Sunday (Optional Holiday)
April 6 (Date Varies): Easter Monday (Optional Holiday)
April 10 (Date Varies): Orthodox Good Friday (Optional Holiday)
April 12 (Date Varies): Orthodox Easter Sunday (Optional Holiday)
April 13 (Date Varies): Orthodox Easter Monday (Optional Holiday)
May 1: Labor Day (Public Holiday)
May 2: Labor Day (Day 2) (Public Holiday)
May 27 (Date Varies): Feast of the Sacrifice (Optional Holiday)
December 24, 2025: Christmas Eve (Optional Holiday)
December 25, 2025: Christmas Day (Optional Holiday)

Sick Leave

Employees in Bosnia and Herzegovina are entitled to sick leave if they are too unwell to work. This is usually paid at 80% of employees’ wages by the employer for the first 42 days of sickness. Sick leave may be paid at a worker’s full rate of pay if they are unwell due to a work-related injury or illness.

Maternity Leave

Female employees in Bosnia and Herzegovina are entitled to 12 months of paid maternity leave. The first 6 months are usually paid at 80% of their normal salary, with the remaining 6 months being paid at 50% of their normal salary.

To be eligible for maternity leave, employees must have contributed to the social security system for at least 365 days. Maternity leave can begin 28 days before the expected due date of the child, and extended maternity leave is usually provided in the event of multiple births.

Paternity Leave

Male employees in Bosnia and Herzegovina are entitled to 7 days of paid leave upon the birth of a baby. Female employees can choose to transfer a portion of their maternity leave to the father of their child.

Severance Pay

Employees who have been dismissed from their job roles without fault may be entitled ot severance pay. They must have had a permanent, indefinite contract with their employer, and the employer must have instigated the termination for severance pay to be valid.

Severance pay is typically paid at a rate of one-third of an employee’s monthly salary for each year of full employment. There is a maximum cap on severance pay of 6 months of wages.

Pensions

The pension system in Bosnia and Herzegovina is made up of mandatory and contributory savings plans, with pensions being regulated through government schemes.

Pension insurance is mandatory for all employees, and contributions must be made to pension plans by both employers and employees.

Supplementary Employee Benefits in Bosnia and Herzegovina

Employers are advised to offer their workers supplementary employee benefits in addition to mandatory benefits that are stipulated by law. Additional perks can help improve employee retention rates and increase recruitment performance.

Some examples of supplementary employee benefits that are popular in Bosnia and Herzegovina include:

Performance bonuses
Private health insurance/life insurance
Additional annual leave
Extra parental leave
Flexible hours
Wellness benefits
Company cars

Optimize Employee Benefits with Remote People

Remote People can help your company do business in Bosnia and Herzegovina with Employer of Record services.

Remote People provides Employer of Record (EOR) services in Bosnia and Herzegovina. Acting as the legal employer, we ensure your employees are hired compliantly, receive all mandatory benefits, and are onboarded smoothly.

Our services cover payroll, HR administration, and tax obligations, giving your business full compliance with local labor laws while freeing you to focus on expansion.

There is a range of other services we can offer to help your business hire in Bosnia and Herzegovina, including the following:

Contact Remote People to learn how we can help your business hire in Bosnia and Herzegovina today.

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