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Labor Laws in Bosnia and Herzegovina

  • Annual Leave: 20 days
  • Maternity Leave: 42 days minimum
  • Public Holidays: 5
  • Workweek: 40 hours per week.
  • Overtime: Maximum 10 hours per week.

Income Tax in Bosnia and Herzegovina

Bosnia and Herzegovina consists of two entities: the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS), with a third region, the Brčko District (BD), being administered by both.

Tax rates differ depending on the entity.

Value Added Tax (VAT) in Bosnia and Herzegovina

The standard VAT rate is 17%, and the VAT regime applies equally throughout the country of Bosnia and Herzegovina.


There is no reduced VAT rate in Bosnia and Herzegovina.

Social Security in Bosnia and Herzegovina

The basis for the calculation of social security contributions is the gross salary. Social security contributions differ depending on the entity.

Federation of Bosnia and Herzegovina (FBiH)

  • Employee Contributions: 31%
  • Employer Contributions: 10.5%

Republika Srpska (RS)

  • Employee Contributions: 31%
  • Employer Contributions: There are no employer social security contributions in Republika Srpska.

Brčko District

  • Employee Contributions: 31%
  • Employer Contributions: 6%

Work Visas Bosnia and Herzegovina

Here is work visa information for Bosnia and Herzegovina, download our guide for an extensive breakdown.

When a foreign national intends to stay in B&H for employment, he/she must obtain a work permit issued by the authority responsible for the employment of foreigners following applicable regulations.

Depending on the place of residence, or in other words, the location of the employer, a work permit is issued by the authorities responsible for the employment of foreigners in the Federation of Bosnia and Herzegovina, Republic of Srpska or Brcko District.

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