GLOBAL EMPLOYER OF RECORD IN 190+ countries
Employer of Record in Bosnia and Herzegovina
Hire strong local or international talent in Bosnia and Herzegovina without waiting for incorporation. Acumen acts as your Employer of Record, helping you enter or test the market, grow headcount as required and separate the hiring decision from a long-term corporate commitment.
GLOBAL EMPLOYER OF RECORD
Global coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
Employing in Bosnia and Herzegovina through an Employer of Record
With an Employer of Record, Acumen International is the legal employer of the people who work for your business in Bosnia and Herzegovina. Acumen signs the employment contract under the labour law of the entity where the person works, registers them with the tax and social insurance authorities, pays salary, contributions and income tax, and carries the employer’s legal obligations. Your business selects the person and directs the work. Where the right person has not yet been found, Acumen International can also run the search, from specialist recruitment to executive search, with background and education checks before the offer.
Situations where an Employer of Record serves a Bosnian hire
- Contractor compliance. Full-time contractors in Bosnia and Herzegovina move onto employment contracts under the applicable entity law, removing the status and permanent establishment questions a tax inspection would raise.
- One accountable provider. Contracts, payroll in both entities, permits and compliance sit with Acumen International instead of being split between several suppliers.
- No entity to set up or maintain. You employ in Bosnia and Herzegovina without registering a company, keeping statutory books or filing as a local employer.
- Market tests and short-term projects. A pilot, a market assessment or a fixed-term assignment is staffed without permanent infrastructure and scaled up or wound down as results come in.
- Bridge to your own entity. While your company is being registered, the first employees start with Acumen International and transfer once it can employ them.
- Fast team launch. Local hires and specialists moving to Bosnia and Herzegovina are onboarded with their permits and payroll handled together.
- Mergers and restructuring. Staff stay employed without a break while the legal entities around them change.
- NGO staffing. International organisations and development programmes employ project staff in either entity under the applicable labour law.
- Employer liability. Acumen International holds the local employer’s liability, so statutory obligations rest with the party the authorities hold responsible.
- Remote team expansion. Members of a distributed team based in Bosnia and Herzegovina receive contracts, pay and social insurance under the law of the entity where they live.
Employing for another business in Bosnia and Herzegovina: the legal basis and its limits
Labour law is set at entity level, by the Federation of Bosnia and Herzegovina, Republika Srpska and Brčko District. The Federation has no regime for temporary work agencies, and Republika Srpska allows only limited temporary assignment between employers. Acumen International therefore employs your team directly under the applicable entity law and provides their services to your business under a commercial agreement. These limits apply:
- The Federation’s Labour Law does not provide for assigning an employee’s contract to another employer, and its draft new Labour Law, expected in parliament in 2026, would regulate temporary employment agencies for the first time, subject to ministry approval.
- In Republika Srpska, an employee can be temporarily assigned to another employer for up to one year, and longer only with the employee’s agreement, where work has temporarily ceased or the two employers have a business cooperation or premises lease agreement, on terms no less favourable than the original contract.
- In Republika Srpska, fixed-term contracts need a statutory ground, and project work can be engaged on a fixed term until completion, up to 60 months.
- A foreign national’s work permit covers one person, one job and one employer, and ends with the employment.
Without an agency framework to lean on, Acumen International structures each engagement so that it is the employer in substance, with authority over the contract, pay and compliance, while your business directs the day-to-day work.
What Acumen International handles in Bosnia and Herzegovina, from recruitment to exit
| Stage | What it involves in Bosnia and Herzegovina |
|---|---|
| Recruitment and checks | Finding the candidate where needed, with background and education checks before the offer |
| Permits | The work permit from the competent employment service, within the annual quota, and temporary residence under the Law on Foreigners |
| Contract and onboarding | A written contract under the Federation, Republika Srpska or Brčko District law, and registration with the tax and social insurance authorities |
| Pay | Monthly payroll in convertible marks, with the contributions and income tax of the relevant entity |
| Time and absence | Working-time and overtime records, the annual leave schedule and sick leave |
| Changes and renewals | Contract annexes, fixed-term limits and annual permit extensions |
| Exit | Notice, severance where due, final settlement and deregistration |
In practice, this replaces the separate payroll provider, labour lawyer, immigration adviser and benefits broker a business would otherwise need in Bosnia and Herzegovina.
Minimum wage and pay rules in Bosnia and Herzegovina
Each entity sets its own minimum wage, expressed as a net amount, and both 2026 rates apply from 1 January:
| Entity | Minimum net monthly wage, 2026 |
|---|---|
| Federation of Bosnia and Herzegovina | KM 1,027 |
| Republika Srpska | KM 1,000, rising to KM 1,450 for roles that require a university degree |
Republika Srpska sets higher minimums for each qualification level: KM 1,050 and KM 1,100 for three- and four-year secondary education, and KM 1,350 for higher vocational education. Salaries are usually agreed as a net or gross monthly amount in convertible marks.
Employment contracts and working time in Bosnia and Herzegovina
| Rule | What it means for you |
|---|---|
| Annual leave is at least 20 working days in both entities, with full leave after six months for first-time employees in Republika Srpska | Leave planning starts from four working weeks |
| In Republika Srpska, overtime is capped at 4 hours a day, 10 a week and 180 a year, or 230 under a collective agreement | Peaks are absorbed within firm caps |
| In the Federation, working time can be redistributed, averaging no more than 52 hours a week, or 60 for seasonal work | Busy periods can be balanced against quieter ones |
| Republika Srpska employers set the leave schedule by business needs and notify employees in writing by 30 June | Leave is planned early in the year |
| A post-employment non-compete can last up to two years in the Federation, with pay of at least half the average salary, and up to one year in Republika Srpska | Restrictions on key staff are entity-specific and budgeted |
Ending employment in Bosnia and Herzegovina
Notice must be stated in the employment contract in both entities. In Republika Srpska, termination for redundancy or underperformance requires 30 days’ notice, underperformance must first be addressed with written instructions and time to improve, and an employee accused of a breach of duty has eight days to respond before any decision.
In Republika Srpska, an employee with at least two years’ service on an open-ended contract who is dismissed for redundancy or underperformance receives severance of one third of the average salary of the last three months for each year of service, up to six average salaries. A termination by mutual consent must be certified at the municipality.
Employment risks in Bosnia and Herzegovina and how Acumen International covers them
| Risk | Where it arises | How Acumen International covers it |
|---|---|---|
| Worker misclassification | A contractor working full time under your direction can be treated as an employee, with contributions and tax due for past periods | Your team is employed under the applicable entity’s labour law |
| IP ownership | Rights in work created in the job sit with the local employer unless the contracts pass them on | Contracts confirm the rights and transfer them onward to your business |
| Client liability for pay and contributions | Without an agency framework in the Federation, an unclear arrangement can make your business look like the real employer | The contract, pay and compliance stay with Acumen International, and the service agreement sets out each party’s role |
| Equal pay for assigned staff | Republika Srpska requires an assigned employee’s terms to be no less favourable than the original contract, and both entities prohibit pay discrimination | Pay is set against comparable roles on objective criteria before the offer |
| Permanent establishment | An employee who concludes contracts for your company can create a taxable presence in Bosnia and Herzegovina | Signing authority stays with your company and is written into the role |
| Exit cost | Severance of up to six average salaries in Republika Srpska after two years’ service, and court claims where procedure is not followed | Grounds, procedure and costs are prepared before any decision |
| Sponsor obligations | A work permit covers one person, one job and one employer, within an annual national quota | Acumen International is the employer named on the permit |
| Pay transparency | Bosnia and Herzegovina is aligning its law with the EU as a candidate country, and EU-based businesses apply the Pay Transparency Directive across their workforce | Pay structures are documented on objective criteria |
Work permits and residence for foreign employees in Bosnia and Herzegovina
A foreign national employed in Bosnia and Herzegovina needs a work permit and temporary residence under the state Law on Foreigners.
- The employer applies to the competent employment service, or its regional office, for the area where the employer is registered.
- The permit covers one person, one job, one employer and a set period, is valid for one year and can be extended, and ends when the employment ends.
- For 2026, the Council of Ministers set a national quota of 7,427 work permits.
- A founder of a registered company does not need a permit for up to three months’ work a year that is not employment, but a founder employed as a paid director does.
What Acumen International contributes
- A registered employer to apply. The permit application must come from an employer registered in Bosnia and Herzegovina. Acumen International applies for your hire, so a foreign specialist can work for your business before you register a company there.
- A place within the annual quota. Applications are timed against the national quota, so a planned hire is not held up because permits for the year have been allocated.
- Continuity year after year. Because each permit is tied to its employer and lasts one year, Acumen International extends it on time, keeping the person’s right to work unbroken for as long as they work for you.
Family members
Family members apply for temporary residence under the Law on Foreigners, and need their own work permit if they intend to work.
Employer cost and income tax in Bosnia and Herzegovina
Contributions differ by entity and are calculated on gross salary.
| Contribution | Federation: employee | Federation: employer | Republika Srpska: employee |
|---|---|---|---|
| Pension and disability insurance | 17% | 2.5% | 18.5% |
| Health insurance | 12.5% | 2% | 12% |
| Unemployment insurance | 1.5% | 0.5% | 0.6% |
| Child protection | — | — | 1.7% |
| Total | 31% | 5% | 32.8% |
In Republika Srpska, all contributions are withheld from the employee’s gross salary and the employer pays none on top. In the Federation, the employer also pays 0.5% for protection from natural disasters and a 0.5% water protection charge, both on net salary. In Brčko District, employees choose whether to pay pension contributions to the Federation or Republika Srpska fund.
Income tax
Income tax is a flat 10% in the Federation and Brčko District and 8% in Republika Srpska.
The Global Payroll Calculator applies each entity’s contributions and tax rate to the same salary, so the cost of a role in Sarajevo can be compared with the same role in Banja Luka.
Sectors employing through an Employer of Record in Bosnia and Herzegovina
- Software and IT services companies employ developers, testers and product teams in Sarajevo, Banja Luka, Mostar and Tuzla.
- Metal processing and automotive component manufacturers employ engineers, quality and production managers.
- Energy companies developing hydropower, solar and wind projects need engineers and project managers.
- Wood processing and furniture exporters employ engineers, designers and export specialists.
- International organisations and development programmes employ programme managers, specialists and field staff.
Hiring cases in Bosnia and Herzegovina and how they are handled
| Case | What local rules add | How it is handled |
|---|---|---|
| A software architect is offered roles in Sarajevo and Banja Luka | Contributions and income tax differ between the Federation and Republika Srpska | Net pay and total cost are compared for both locations before the offer |
| An engineering lead joins for a 36-month infrastructure project in Republika Srpska | Project work can be engaged on a fixed term until completion, up to 60 months | The contract is tied to the project and its expected end date |
| A senior engineer from Turkey relocates to Mostar | A work permit within the annual quota and temporary residence are both needed | Acumen International files both as the employer before the start date |
| A product manager’s role is cut after six years in Republika Srpska | Severance is at least two average salaries, after written notice of the grounds | Notice and severance are budgeted before the decision |
Benefits, payroll and leave in Bosnia and Herzegovina
Packages for skilled roles in Bosnia and Herzegovina often add private health insurance, a paid meal allowance and transport costs, with tax treatment that differs by entity.
Payroll obligations
| When | What happens |
|---|---|
| Before the first working day | The employee is registered with the tax and social insurance authorities of the relevant entity |
| Every month | Salary is paid in convertible marks, with contributions and income tax withheld and paid |
| By 30 June in Republika Srpska | Employees are told their annual leave schedule in writing |
| Before each permit expires | The work permit extension is filed |
Leave entitlements
| Leave | Entitlement | Paid by |
|---|---|---|
| Annual leave | At least 20 working days | Employer |
| Public holidays | Holidays set separately in each entity | Employer |
| Sick leave | Salary compensation during incapacity | Employer for up to 42 days in the Federation and 30 days in Republika Srpska, then health insurance |
| Maternity leave | Up to one year, from up to 28 days before the birth, with compulsory postnatal leave of 42 days in the Federation and 60 days in Republika Srpska | Social insurance |
Sources
- Employment of foreign nationals in Bosnia and Herzegovina
- Valid work permits issued in Bosnia and Herzegovina in 2025
- 2026 annual quota of 7,427 work permits for foreign workers
- Minimum wage updated in Republika Srpska from 1 January 2026
- Republika Srpska: new Labour Act
- Draft Labour Law of the Federation of Bosnia and Herzegovina
- Employment law guide: Bosnia and Herzegovina
- Bosnia and Herzegovina: social security contributions
- Bosnia and Herzegovina: taxes on personal income
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
Can we move an existing contractor or employee onto an Employer of Record in Bosnia and Herzegovina?
Yes, where the arrangement is suitable. Acumen can employ the individual through its Employer of Record structure in Bosnia and Herzegovina, giving the worker a formal local employment relationship without requiring your company to create its own employing entity. This is an employment transition, not a contractor reclassification service.
Is an Employer of Record suitable for one senior or specialist hire in Bosnia and Herzegovina?
Yes. An Employer of Record can make sense when the role matters commercially but a single hire or small headcount does not justify creating a local company. Acumen provides the employing structure in Bosnia and Herzegovina while your business retains ownership of the role and its objectives.
What happens if we later open our own entity in Bosnia and Herzegovina?
The Employer of Record arrangement can act as a bridge rather than a permanent commitment. When your Bosnia and Herzegovina entity is ready and direct employment becomes the preferred model, Acumen can coordinate the employee transition subject to the local requirements that apply at that point.