Bosnia and Herzegovina

Employment taxes

• Income tax: Flat rate of 10% on personal income.
• Social contributions: Employees contribute 31% of their gross salary (includes pension, health, and unemployment).
• Net salary is what’s left after these are deducted.
• Taxes are automatically withheld by your employer.

Leave policy

• Paid vacation: Minimum 20 working days per year.
• Public holidays: Around 9–14 public holidays per year, varying by region and religious tradition.
• Sick leave: Covered by the employer for the first 42 days. After that, the Health Insurance Fund steps in.
• Maternity leave: 12 months, paid and job-protected.
• Paternity leave: No nationwide policy, but some employers offer short-term leave.
• Parental leave: After maternity leave, either parent may continue leave under certain conditions.

Employment termination

• Termination requires a valid reason (performance, misconduct, redundancy, etc.).
• Notice period: Typically 14–30 days, depending on the contract.
• Severance pay: Applicable if the employee is let go without cause.

Hiring and contracts

• Written employment contracts are mandatory.
• Must include job title, salary, hours, duties, and termination terms.
• Contracts can be fixed-term or indefinite, and must be registered with the local employment office.
• A probation period of up to 6 months is allowed and commonly used. During this time, the contract can be terminated with shorter notice.

Payroll and salary payments

• Salaries are paid monthly, usually by bank transfer.
• The national minimum wage is approximately €823 gross/month.
• Payslips must be provided and detail gross/net income and deductions.

Benefits

Mandatory:

• Pension
• Health insurance
• Unemployment insurance

Optional:

• Private health insurance
• Meal allowances
• Transportation or commuting costs
• Bonuses based on performance

Monthly living cost (Sarajevo Edition)

• Rent (1-bed in center): €250–€400
• Utilities: €100–€150
• Groceries: €150–€250
• Public transport pass: €25
• Mobile/internet: €15–€25
• Coffee: €1–€1.50
• Total: You can live well on €700–€1,000/month.

How to get a local ID number

If you’re working or staying long-term in Bosnia, you’ll need a JMBG (Unique Master Citizen Number).

For employees/residents:

• Your employer helps register you with the tax and social security authorities.
• The number is assigned during this process.

For remote workers:

• You’ll need to apply for temporary residence first, then request your JMBG through local authorities.

Social security registration

• Your employer handles this when you sign your employment contract.
• Covers pension, health insurance, and unemployment benefits.
• Contributions are automatic and deducted monthly.

Banking

Opening a local bank account is straightforward once you have a JMBG. You’ll need:

• ID or passport
• Residence permit
• Employment contract

Popular banks:

• UniCredit Bank
• Raiffeisen Bank
• NLB Banka
• Sparkasse Bank

Housing and rental process

• Rental agreements are typically month-to-month or annual.
• Most apartments come furnished.
• Tenant rights: You're protected by law, including proper notice for eviction and agreed rental terms.
• Deposits: Usually 1 month’s rent.

Healthcare system

• Public healthcare is accessible to anyone registered with social security.
• Quality varies, private clinics are affordable and widely used for faster service.

Driving and public transport

• Public transport: Trams, buses, and trolleys operate in most cities.
• Monthly pass: Around €25 in Sarajevo.
• Driving: Foreigners can drive with an international driver’s permit or exchange their license if staying long-term.

Emergency and important contacts

• General emergency: 112
• Ambulance: 124
• Police: 122
• Fire: 123
• Foreigners' Affairs Office: Contact for visas and residence info

Work permit and visa requirements

For EU citizens:

Visa-free for up to 90 days.

• For longer stays or employment: apply for a temporary residence permit and work permit (handled with employer support).

For non-EU citizens:

• Start with a visa for employment purposes via the Bosnian consulate.
• Once in Bosnia, apply for temporary residence and register with the local authorities.
• Your employer initiates the work permit process.

Business culture and work norms

• Respectful and formal, especially in meetings.
• Expect a hierarchical structure, but younger companies are more flexible.
• Punctuality is appreciated, though not always observed.
• Strong focus on building trust and relationships before diving into business.