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Bosnia and Herzegovina PEO and Employer of Record

Expand your business into Bosnia and Herzegovina and hire employees - in as little as 48 hours

Expand your business into Bosnia and Herzegovina with or without a Bosnia and Herzegovina entity

Bosnia and Herzegovina has come a long way since the 1990s, with drastic improvements in economic stability and standards of living. The young Eastern European country is now a significant destination for foreign companies who are increasingly recognizing its potential for growth.

However, If you are planning an expansion into Bosnia and Herzegovina, you may encounter unexpected delays. The country’s complicated national laws, unique language, and many other factors can potentially lead to a long expansion process that can take weeks or even months.

The country’s turbulent political past adds to the complexity as there are two separate entities in the country: the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS). These two entities have distinct governments, and laws, presenting potential challenges to businesses aiming to expand.

At Horizons, our experienced expansion team helps businesses expand into Bosnia and Herzegovina. Our tailored professional employer organization (PEO), employer of record, and payroll services can provide you with all the support you need to efficiently expand your business into Bosnia and Herzegovina, whether or not you have already established an entity Bosnia and Herzegovina.

Using our dedicated in-house recruitment team, we can also source, hire, and onboard your new workforce in Bosnia and Herzegovina, as well as manage any ongoing HR and compliance administration. Our dedicated team will provide everything you need to expand into Bosnia and Herzegovina as efficiently as possible and could drastically cut your expansion costs.

How Horizons outsourcing can help you expand into Bosnia and Herzegovina

Horizons enables your business to expand operations into Bosnia and Herzegovina- without setting up a legal subsidiary.

Rapid Market Entry

Horizons will enable you to source, hire, and onboard professionals across Bosnia and Herzegovina in as little as 48 hours.

Cost-Effective Expansion

Our PEO solution can help you benefit from cost savings of up to 82%, without the need to establish a Bosnia and Herzegovina entity.

Payroll Outsourcing

Simplified Bosnia and Herzegovina salary & payroll processing, including social security payments, tax, and any other required contributions.

Employee Onboarding

Utilize the relevant provision for all types of Bosnia and Herzegovina labor contracts, whether a fixed-term or open-ended contract.

Onsite Legal & HR Team

Full support for Bosnia and Herzegovina-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.

Ensure Full Compliance

We ensure that employment contracts are fully compliant and adhere to Bosnia and Herzegovina labor laws and best practices.

Hiring in Bosnia and Herzegovina - Employment Law Overview

Bosnia and Herzegovina employment contracts

Companies hiring in Bosnia and Herzegovina are legally required to provide written contracts of employment for every employee. These contracts should include all relevant details of the agreement such as compensation, working hours, entitlements, and so on. Additionally, they should be written in at least one of the country’s official languages of Bosnian, Croatian, and Serbian, and reference the national currency of the Bosnia and Herzegovina convertible mark.

Working hours in Bosnia and Herzegovina

The standard working week in Bosnia and Herzegovina is 40 hours spread across five days.

National holidays in Bosnia and Herzegovina

There are four main public holidays in Bosnia and Herzegovina, which many employees receive as leave from work:

  • Orthodox Christmas Day
  • Ramadan Bajram
  • Independence Day
  • Labor Day

Vacation in Bosnia and Herzegovina

Employees in Bosnia and Herzegovina are entitled to a minimum of 20 days of paid vacation leave per year.

Sick leave in Bosnia and Herzegovina

Employees in Bosnia and Herzegovina are entitled to at least five days of paid sick leave annually.

Maternity and paternity leave in Bosnia and Herzegovina

Female employees in Bosnia and Herzegovina are generally entitled to one year of maternity leave. However, the specifics of the laws vary between entities. In FiBH, employees must take at least 42 days of leave and are entitled to state compensation during their leave which can be made up to full pay by the employer. In RS, employees must take at least 60 days of leave and are compensated at full average pay from the preceding 12 months.

Employee severance and terminations in Bosnia and Herzegovina

In FiBH, employees are entitled to between 14 days and three months of notice prior to termination. In RS, employees are entitled to a minimum of 60 days of notice. Severance in FiBH is generally paid for employees of more than two years and should be at least one-third of the employee’s monthly salary per year of service.

Tax laws in Bosnia and Herzegovina

Social security contributions vary depending on the local authority. In FiBH, employees must pay 31% of salary and employers contribute 10.5%. In RS, employees contribute 33% and employers contribute 10.5%.

Income tax in Bosnia and Herzegovina is 10% for the majority of employees across all entities.

Health coverage in Bosnia and Herzegovina

Bosnia and Herzegovina has a decentralized combination of public and private healthcare. It is common for employers to provide private medical insurance as part of their benefits packages.

Bosnia and Herzegovina compensations & benefits

Compensation laws in Bosnia and Herzegovina

The minimum wage in Bosnia and Herzegovina can vary between the FBiH and RS. For example, in RS the minimum wage was raised to 520 convertible marks per month in 2020.

Benefit management in Bosnia and Herzegovina

Setting up a benefits system for your Bosnia and Herzegovina workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.

Horizons can help you fast-track this phase of your Bosnia and Herzegovina expansion by providing tailored benefit management services. Our experienced team can advise you on the standard practice and handle your benefit management process , allowing you to focus on the work of expanding your organization in Bosnia and Herzegovina.

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Why choose Horizons' services for your expansion into Bosnia and Herzegovina?

Horizons’ Bosnia and Herzegovina employer of record, PEO, and payroll services provide everything organizations need to begin trading in Bosnia and Herzegovina. Our team can ensure you are operational in as little as 48 hours, and could save up to 82% in expansion costs, even if you haven’t yet set up an entity in Bosnia and Herzegovina.

We can take care of all your expenses, payroll setup, benefits, and legal compliance work in Bosnia and Herzegovina, as well as any ongoing human resources work. As the only global PEO with a dedicated in-house recruitment team, we can also find, recruit, and onboard your local workforce, using our Bosnia and Herzegovina subsidiary to act as employer of record for your hires so you don’t need to establish a legal entity in Bosnia and Herzegovina.

Speak to our Bosnia and Herzegovina experts today to learn how Horizons can simplify and fast-track your Bosnia and Herzegovina expansion.

Explore our expansion solutions in Bosnia and Herzegonvina