--- title: "Bosnia & Herzegovina" id: "11684" type: "global-payroll" slug: "bosnia-herzegovina" published_at: "2025-08-02T05:13:47+00:00" modified_at: "2026-11-02T13:27:46+00:00" url: "https://topsourceworldwide.com/global-payroll/bosnia-herzegovina/" markdown_url: "https://topsourceworldwide.com/global-payroll/bosnia-herzegovina.md" taxonomy_continent: - "Europe" --- # Payroll Services in Bosnia and Herzegovina Fully managed payroll across the Federation of BiH and Republika Srpska: 31% employee contributions, income tax at 10% or 8% and each entity’s own rules, with a named specialist a phone call away. [Get in touch](https://topsourceworldwide.com/contact-us/) TopSource rated 5/5 by our customers - - - - - [Read reviews](#testimonials) ## What a payroll company in Bosnia handles for you Bosnia and Herzegovina has no single payroll system. The Federation of BiH and Republika Srpska each have their own contribution, income tax and labour laws, and Brčko District has its own income tax law. The same gross salary gives a different net pay and employer cost depending on where you are registered. ### Two entities, two rulebooks Sarajevo and Banja Luka apply different allowances, tax rates, minimum wages and notice periods. We run each employee under the right entity’s law and report to its own tax administration. ### Federation: 31% plus 5% Employees in the Federation pay 31% of gross salary and employers 5%. The employer rate was cut from 10.5% on 1 July 2025. Contributions are due at the same time as the salary. ### Republika Srpska: 31% with no employer share Employees in Republika Srpska pay 31% of gross salary. The employer pays no contributions on top, but it calculates and pays the employee’s share with each salary payment. ### Income tax at 10% or 8% Tax is 10% in the Federation after an allowance of KM 300 a month, and 8% in Republika Srpska after KM 1,000 a month. Both apply to gross pay after contributions. ### Net minimum wages The 2026 minimum wage is KM 1,027 net in the Federation and KM 1,000 net in Republika Srpska, where it rises to KM 1,450 by the qualification a job requires. ## Our Partners Globally ## Calculate Your Employee Costs in Bosnia and Herzegovina Enter a gross annual salary to see the employer’s contributions in the Federation of BiH for 2026: 5% of gross salary. In Republika Srpska the employer pays no contributions on top of gross salary. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/) ##### Bosnia & Herzegovina Annually Monthly | | British Pound | Bosnia & Herzegovina | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## Know your Bosnia and Herzegovina hiring costs before you commit Tell us the role, the entity and the salary. We’ll send back the full employer cost and net pay within one business day. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## Employer Costs in Bosnia and Herzegovina Explained Employers in the Federation of BiH pay 5% of gross salary in contributions plus two small levies on net pay. Employers in Republika Srpska pay no contributions on top. In both, employees pay 31% from gross salary. #### Contributions in the Federation of BiH Employees pay 17% for pension and disability insurance, 12.5% for health and 1.5% for unemployment. Since 1 July 2025 employers pay 2.5%, 2% and 0.5%, a total of 5%, down from 10.5%. The base can’t be lower than the minimum wage. Contributions fall due when the salary is paid. If it isn’t paid, they are still calculated and due by the last day of the month in which payment was due. #### Contributions in Republika Srpska Employees pay 18.5% for pension and disability insurance, 10.2% for health, 0.6% for unemployment and 1.7% for child protection, a total of 31%. Employers pay no separate contribution. Contributions are due with each salary payment, on a base no lower than the minimum gross wage, and the monthly return is due by the end of the following month. Workers must be registered before they start, with fines of KM 10,000 to 30,000 for an employer that doesn’t. #### Income tax in each entity In the Federation, tax is 10% on gross pay after contributions and a basic allowance of KM 300 a month, more with dependants on the employee’s tax card. The employer files its pay, contribution and tax data by the 15th of the following month and gives each employee an annual statement by the end of February. In Republika Srpska, tax is 8% after a basic allowance of KM 1,000 a month. Brčko District applies 10% after an allowance of KM 1,200 a month, and its employees can choose the Federation or Republika Srpska pension fund. #### What an employee in Bosnia and Herzegovina actually costs On KM 3,000 gross a month in the Federation, the employer pays KM 150 in contributions and about KM 19 in levies, for a cost of KM 3,168.93. The employee takes home KM 1,893. On the same gross in Republika Srpska, the employer’s cost stays at KM 3,000 and the employee takes home KM 1,984.40. #### Labour law and work permits Both entities set a minimum of 20 working days’ annual leave. In the Federation the week is 40 hours, probation lasts up to six months, and minimum notice is 14 days from the employer and 7 from the employee. Severance after two years is at least a third of average monthly pay per year of service, up to six months’ pay. In Republika Srpska minimum notice is 30 and 15 days. In the Federation, a draft of a new Labour Law went to the Government in January 2026 and isn’t yet in force. Foreign employment rules changed on 23 May 2026: cantonal services decide on work permits within 30 days, and renewals are filed 60 to 30 days before expiry. ## Payroll rates in Bosnia and Herzegovina, 2026 | Item | Federation of BiH | Republika Srpska | Applies to | | --- | --- | --- | --- | | Employee: pension and disability | 17% | 18.5% | Gross salary | | Employee: health | 12.5% | 10.2% | Gross salary | | Employee: unemployment | 1.5% | 0.6% | Gross salary | | Employee: child protection | None | 1.7% | Gross salary | | Total employee contributions | 31% | 31% | Gross salary | | Employer contributions | 5% | None | Gross salary | | Income tax | 10% | 8% | Gross pay after contributions and allowance | | Basic personal allowance | KM 300 | KM 1,000 | A month | | Minimum wage | KM 1,027 net | From KM 1,000 net | A month | ### Employer contributions in the Federation of BiH | Contribution | Until 30 June 2025 | Since 1 July 2025 | | --- | --- | --- | | Pension and disability | 6% | 2.5% | | Health | 4% | 2% | | Unemployment | 0.5% | 0.5% | | Total | 10.5% | 5% | ### Gross to net and employer cost in Bosnia and Herzegovina, monthly | Monthly gross salary | Entity | Employee contributions | Income tax | Net pay | Total employer cost | | --- | --- | --- | --- | --- | --- | | KM 2,000 | Federation | KM 620 | KM 108 | KM 1,272 | KM 2,112.72 | | KM 2,000 | Republika Srpska | KM 620 | KM 30.40 | KM 1,349.60 | KM 2,000 | | KM 3,000 | Federation | KM 930 | KM 177 | KM 1,893 | KM 3,168.93 | | KM 3,000 | Republika Srpska | KM 930 | KM 85.60 | KM 1,984.40 | KM 3,000 | | KM 6,000 | Federation | KM 1,860 | KM 384 | KM 3,756 | KM 6,337.56 | | KM 6,000 | Republika Srpska | KM 1,860 | KM 251.20 | KM 3,888.80 | KM 6,000 | The table assumes a full-time employee with the basic allowance only. The Federation’s employer cost includes 5% contributions and two levies of 0.5% each on net pay, for disaster protection and water. It excludes the disability employment fee where it applies, and meal, transport and holiday allowances under collective agreements. These are TopSource calculations from the verified rates. Rates and thresholds shown were verified on 2 November 2026 against the current contribution, income tax and labour laws of the Federation of BiH and Republika Srpska and the 2026 minimum wage decisions. This page is general information, not tax or legal advice. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) ## How our Bosnia and Herzegovina payroll service works 1. Map your setup We confirm where your company and any business units are registered, which entity’s law applies to each employee, and the collective agreements and contract terms that set pay and allowances. 2. Migrate or onboard New hires are registered before they start, tax cards are collected, foreign employees’ work permits are checked, and year-to-date pay, tax and leave balances are carried across. 3. Run and review Each month you receive a payroll report for approval before anything is paid: gross to net per employee and every tax and contribution line, with variances explained. Nothing is paid until you approve it. 4. File and pay We pay contributions and tax with each salary, file the monthly returns with the tax administration of each entity, and issue written pay calculations and annual statements. 5. Stay current The Federation cut employer contributions in 2025 and is drafting a new Labour Law, and each entity resets its minimum wage every year. We apply each change as it takes effect and re-verify the figures on this page. ## Why Choose TopSource for Global Payroll in Bosnia and Herzegovina TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option. If you would rather not employ staff in Bosnia and Herzegovina directly, our [Employer of Record in Bosnia and Herzegovina](https://topsourceworldwide.com/employer-of-record/bosnia-herzegovina/) can employ them on your behalf. We don’t hide fees or sneak price increases. We run Bosnian payroll in-house and file under your own tax registration rather than a bureau’s, so the same team that pays your salaries answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions and fees, and one live Portico view of Bosnia and Herzegovina beside every other country we run for you, across the Balkans and beyond. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified. [Global Payroll](https://topsourceworldwide.com/global-payroll/) [Get Started](https://topsourceworldwide.com/contact-us/) ## Other services Accelerating your growth in Bosnia and Herzegovina and beyond #### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment. ### Global Employer of Record (EOR) services With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion. ### Actionable HR Advisory On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking. ### Global entity management Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business. ### Accounting We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction. ## Meet our experts for Bosnia and Herzegovina Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way. [Our People](https://topsourceworldwide.com/our-people/) ## Beyond a payroll service **A globalization accelerator** A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth. - [Payroll platform](#) - [Audit](#) - [Intelligence](#) - [Advisory](#) ##### Payroll platform ###### Global payroll simplified Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity. ##### Audit ###### Eliminate barriers to growth Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals. ##### Intelligence ###### Build a data-driven talent strategy Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits. ##### Advisory ###### Expert guidance that turns complexity into clarity. Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion. ## Bosnia and Herzegovina payroll FAQs ### What are employer payroll contributions in Bosnia and Herzegovina in 2026? In the Federation of BiH, employers pay 5% of gross salary, down from 10.5% since 1 July 2025, plus levies of 0.5% each on net pay. In Republika Srpska, employers pay no contributions on top of gross salary. ### What do employees pay in social contributions in Bosnia and Herzegovina? 31% of gross salary in both entities, split differently. In the Federation: 17% pension, 12.5% health and 1.5% unemployment. In Republika Srpska: 18.5% pension, 10.2% health, 0.6% unemployment and 1.7% child protection. ### How is income tax on salaries calculated in Bosnia and Herzegovina? On gross pay after contributions and the allowance: 10% after KM 300 a month in the Federation, 8% after KM 1,000 a month in Republika Srpska, and 10% after KM 1,200 a month in Brčko District. ### When are payroll taxes due in Bosnia and Herzegovina? In both entities contributions are due with each salary payment. In the Federation the employer reports pay data by the 15th of the following month. In Republika Srpska the monthly return is due by the end of the following month. ### How much does it cost to employ someone in Bosnia and Herzegovina? On KM 3,000 gross a month, about KM 3,169 in the Federation with KM 1,893 net pay, or KM 3,000 in Republika Srpska with KM 1,984.40 net pay. Tell us the role and salary and we’ll send the full cost within one business day. ### What is the minimum wage in Bosnia and Herzegovina in 2026? KM 1,027 net a month in the Federation. In Republika Srpska it is KM 1,000 net, rising to KM 1,050, 1,100, 1,350 and 1,450 by the qualification a job requires. ### Why does payroll differ between the Federation and Republika Srpska? Each entity has its own contribution, income tax and labour laws. The total employee rate matches at 31%, but the employer’s share, tax rate, allowance, minimum wage and notice periods don’t. ### What notice and severance apply in Bosnia and Herzegovina? In the Federation minimum notice is 14 days from the employer and 7 from the employee, and severance after two years is at least a third of monthly pay per year, up to six months’ pay. In Republika Srpska notice is 30 and 15 days. ### How do work permits work in the Federation of BiH? Since 23 May 2026 cantonal employment services must decide within 30 days of a complete application, and employers file renewals 60 to 30 days before expiry. Shortage occupations skip the unemployment register check. ### Can a foreign company run payroll in Bosnia and Herzegovina without an entity? Running payroll there means a registered company or business unit in the relevant entity. TopSource can run payroll for your Bosnian entity or employ your team through our Employer of Record service. [Couldn’t find what you were looking for?](/contact-us/) ## Looking at other markets too? We help organizations employ and pay teams in 164 countries. 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krone](https://topsourceworldwide.com/global-payroll/norway/) [Oman Capital: Muscat Currency: Rial](https://topsourceworldwide.com/global-payroll/oman/) [Pakistan Capital: Islamabad Currency: Pakistani Rupee](https://topsourceworldwide.com/global-payroll/pakistan/) [Panama Capital: Panama City Currency: Balboa (PAB) and United States dollar (USD)](https://topsourceworldwide.com/global-payroll/panama/) [Papua New Guinea Capital: Port Moresby Currency: Papua New Guinean Kina](https://topsourceworldwide.com/global-payroll/papua-new-guinea/) [Paraguay Capital: Asunción Currency: Paraguayan guaraní](https://topsourceworldwide.com/global-payroll/paraguay/) [Peru Capital: Lima Currency: Peruvian sol](https://topsourceworldwide.com/global-payroll/peru/) [Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/global-payroll/philippines/) [Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/global-payroll/portugal/) [Puerto Rico Capital: San Juan Currency: United States dollar](https://topsourceworldwide.com/global-payroll/puerto-rico/) [Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/global-payroll/qatar/) [Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/global-payroll/romania/) [Rwanda Capital: Kigali Currency: Rwandan franc](https://topsourceworldwide.com/global-payroll/rwanda/) [Saint Kitts & Nevis Capital: Basseterre Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-kitts-nevis/) [Saint Lucia Capital: Castries Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-lucia/) [Saint Maarten Capital: Philipsburg Currency: Caribbean guilder (Cg)](https://topsourceworldwide.com/global-payroll/st-maarten/) [Saint Vincent & the Grenadines Capital: Kingstown Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: U.S. Dollar](https://topsourceworldwide.com/global-payroll/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/global-payroll/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/) [Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/global-payroll/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/global-payroll/south-sudan/) [Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/) [Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/) [US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/global-payroll/zimbabwe/) Load more