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Payroll in Bosnia and Herzegovina

Payroll in Bosnia and Herzegovina runs in BAM on a monthly payroll cycle, with contributions filed per the relevant entity's tax and social security administration (federation or republika srpska). cycle, with statutory employer contributions and no statutory 13th-month payment is mandated; practice varies by employer and collective agreement.. Gracemark operates it end-to-end, humans, not tickets.

Currency
BAM, Bosnia and Herzegovina convertible mark
Payroll cycle
Monthly payroll cycle, with contributions filed per the relevant entity's tax and social security administration (Federation or Republika Srpska).
Working week
Standard work week is 40 hours under both entities' labor laws, with overtime paid at a statutory premium.
Minimum wage
The Federation of Bosnia and Herzegovina set its 2024 minimum wage (najniža plaća) at BAM 619 per month, per the Federal Government decision effective 2024; Republika Srpska sets its own separate minimum wage.
13th-month
No statutory 13th-month payment is mandated; practice varies by employer and collective agreement.
Employer cost
Employer social security contributions vary by entity but are generally in a moderate range (combined employer/employee contributions can exceed 30% of gross salary), funding pension, health and unemployment insurance.
Probation
Probation periods are commonly up to 6 months, consistent with entity-level labor law provisions.
Notice period
Notice periods and severance depend on tenure and grounds for termination, and differ slightly between the Federation and Republika Srpska legal frameworks.

Two ways to run payroll in Bosnia and Herzegovina

Own-entity payroll

For long-term presence in Bosnia and Herzegovina. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Southeast Europe time.

EOR-run payroll

No entity in Bosnia and Herzegovina? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in typically 1–3 weeks via eor, no local incorporation.

Compliance essentials in Bosnia and Herzegovina

  • Employment model: EOR vs. contractor vs. local entity for Bosnia and Herzegovina
  • Mandatory benefits, social contributions and any 13th-month obligation
  • Termination rules, statutory notice and severance exposure
  • Contractor misclassification risk and how local law defines employment
  • Currency (BAM), payroll cycle and Bosnian-language contract requirements

Get a payroll quote for Bosnia and Herzegovina

Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.

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Deeper guide
Hiring guide: Bosnia and Herzegovina
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