Country Guide
Employer of Record in Bosnia and Herzegovina
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Employer Taxes
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Expanding to Bosnia & Herzegovina? EOR Services Help You Hire Globally, Pay Locally, Expand Effortlessly
INS Global’s Employer of Record (EOR) in Bosnia & Herzegovina offers a strategic solution for international business growth. Our service enables seamless recruitment and employee management across borders without establishing a local entity.
With coverage in Bosnia & Herzegovina and over 160 countries, our EOR provides a secure, efficient approach to sourcing global talent. We transform complex international workforce challenges into streamlined, cost-effective processes.
Our dedicated EOR handles all HR-related activities, ensuring complete employer compliance and enabling businesses to expand rapidly—often within days—while minimizing administrative complexities and operational costs.
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Why Choose an EOR in Bosnia & Herzegovina Over Company Incorporation?
Establishing a new company doesn’t just take time, it can also increase your operational costs. Working with a global EOR streamlines the process and empowers your business to grow in the most efficient way.
Working with a global EOR…
- Reduces expansion time
- Saves money
- Ensures legal compliance
- Empowers efficient growth
PEO/EOR vs Company Incorporation
The Advantage in Figures
PEO/EOR
Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
Advantages of Using a Employer of Record in Bosnia & Herzegovina
Ensure Legal Compliance
EORs in Bosnia & Herzegovina have local expertise that can help you navigate the complex labor regulations. This helps streamline your expansion while ensuring that you‘re always compliant, preventing costly errors, penalties, and fines.
Reduced Expansion Costs
Working with a local EOR drastically reduces the cost of expanding abroad. The streamlined process saves time and enables you to grow your business internationally at a fraction of the cost.
Focus on Growing Your Business
EORs take all the HR-related responsibilities off your shoulders so that you can focus on growing your business abroad. EORs in Bosnia handle everything from payroll processing to recruiting and managing talent so that you can grow your team more efficiently.
Expand Efficiently
If you were to set up a new company abroad, the legal process can take anywhere from 4 to 12 months. On the other hand, working with a EOR streamlines the process so that you can set everything up in less than a week.
Manage Your HR Remotely
INS Global offers you a way to manage your diverse workforce seamlessly through a cloud-based platform. This allows you to keep your finger on the pulse no matter where you are in the world.
How Does an EOR In Bosnia & Herzegovina Work?
INS Global’s EOR in Bosnia & Herzegovina empowers your company to expand abroad in just 4 simple steps.
1
We work with you to create a unique strategic plan meeting your operational goals.
2
Our EOR provides the legal entity to help recruit and manage staff in Bosnia & Herzegovina.
3
We handle all HR-related tasks, such as recruitment, contract management, and payroll processing, to ensure legal compliance in Bosnia & Herzegovina.
4
Your employees focus on your business goals while we take care of HR and compliance.
Why Bosnia & Herzegovina Is an Emerging Opportunity for Global Expansion
Bosnia & Herzegovina has steadily gained attention as a strategic location for businesses looking to establish a presence in Southeastern Europe. With competitive labor costs, a multilingual workforce, and improving digital infrastructure, the country offers strong potential in sectors such as IT, manufacturing, logistics, and customer support.
Despite its appeal, Bosnia’s decentralized administrative structure — split into the Federation of Bosnia and Herzegovina, the Republic of Srpska, and the Brčko District — presents unique legal and compliance challenges. A trusted Employer of Record (EOR) helps you navigate these regional variations, ensuring a unified and fully compliant employment framework from day one.
Hidden Costs of Local Entity Setup in Bosnia & Herzegovina
Establishing a legal entity in Bosnia & Herzegovina involves more than company registration. Depending on the region, businesses must:
Register with different tax and social security authorities
Maintain ongoing legal representation
Manage complex payroll and benefits reporting
Adapt employment contracts to each administrative unit’s requirements
These tasks consume significant time and resources. A local EOR simplifies the process by acting as your legal employer, taking on compliance and HR responsibilities while you retain operational oversight.
INS GUIDES
Check Our Labor Law Guides
Labor Law in Bosnia & Herzegovina
Employment Contracts in Bosnia & Herzegovina
Working Hours
- The working week in Bosnia & Herzegovina runs from Monday to Friday.
- Full-time staff generally work 8 hours per day for a maximum of 40 hours per week.
- Part-time employees work around 20 hours per week.
- Employees are entitled to a higher hourly rate for overtime. This is typically 125% of the normal hourly rate.
Types Of Leave
Annual Leave
- Bosnia & Herzegovina has 13 official national holidays.
- Employees are entitled to a minimum of 20 working days of paid leave per year.
- Employees may be entitled to additional time off according to their employment contract.
- The scheduling of time off is subject to the employer.
Sick Leave
- Bosnian labor law allows employees to up to 42 days of sick leave.
- Employees should notify their employers before the working day starts and provide a medical certificate as proof of illness.
- Employers are required to pay the salary of employees for the first 42 days of sick leave. Additional time off is then taken from the competent health insurance fund.
Maternity / Paternity Leave
- According to Bosnian labor law, female employees are entitled to up to 1 year of maternity leave, with a legal minimum of 42 days.
- Female employees may work half days until their child is 2 years old.
- The father of the child may also work half days if the mother is working full time.
- Employees are entitled to 50% to 80% of their usual salary while on maternity leave.
- In the Republic of Srpska and the District of Brcko, employees can get an additional 6 months of maternity leave if they have twins. They are also entitled to 100% of their usual salary.
- Fathers are entitled to 7 days of unpaid paternity leave.
Tax Law
- Employers in Bosnia & Herzegovina are responsible for deducting all taxes and social security contributions.
- Employers contribute 6% toward an employee’s social security and pension, 4% toward health insurance, and 0.5% toward unemployment insurance.
- Employees contribute 17% toward social security pension, 12.5% toward health insurance, and 1.5% toward unemployment insurance.
- Employer contributions total 10.5%, while employee contributions total 31%.
- The income tax rate for employees is a flat 10% of all income earned.
- All employees are required to file their own tax returns each year.
- The corporate income tax rate in Bosnia & Herzegovina is 10%.
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Frequently Asked Questions
faqs
Can I use my company to employ / dispatch staff abroad?
No, it is necessary to use a local entity abroad to comply with each country labor law.
Do I need to set up a local entity abroad to employ/dispatch staff?
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
What's an Employer of Record in Albania?
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become
What is the Employer of Record liabilities?
Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.
How quick is it possible to expand abroad?
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
What is the cost of PEO services in Bosnia & Herzegovina in 2026?
A PEO can help you save money by streamlining your entire expansion plan. The costs of these services are simply a percentage of your employee‘s salary.
Is an Employer of Record a legal option in Bosnia & Herzegovina?
Certainly, working with an Employer of Record in Bosnia & Herzegovina is a legal and efficient solution that streamlines your expansion plans while reducing costs.
How are salaries and payroll organized in Bosnia & Herzegovina?
Salaries are typically processed monthly for full-time employees, while part-time workers may prefer weekly or bi-monthly payments. Employers deduct taxes and social
How costly is recruitment in Bosnia & Herzegovina in 2026?
INS Global simplifies and streamlines recruitment, hiring, and staff management remotely, reducing costs associated with managing an
Can a Bosnian EOR employ personnel on my behalf throughout Bosnia & Herzegovina?
Absolutely, a Bosnian Employer of Record can recruit and hire employees from all regions, expanding
How easy is it to modify employment contract requirements in Bosnia & Herzegovina?
How easy is it to modify employment contract requirements in Bosnia & Herzegovina?
Do I need to pay taxes or social contributions for my employees in Bosnia & Herzegovina?
INS Global tailors its services to your specific needs, assisting you in recruiting and hiring as many employees as necessary for your expansion plans.
How many staff members can I employ internationally via a PEO partner?
While some PEOs may have minimums and maximums that you can employ abroad, INS Global caters to your specific needs. We work with you to help recruit and hire as many employees as you need for your expansion plans.
What are the costs associated with terminating an employee in Bosnia & Herzegovina?
Termination costs vary depending on the circumstances. Employees are generally entitled to a minimum of one-third of their salary for each year or more than 6 months’ salary.
Do workers in Bosnia & Herzegovina require a physical workspace?
In Bosnia & Herzegovina, you have flexibility in hiring employees for both in-person and remote opportunities, ensuring cost-efficiency during market entry.
Can INS Global assist in recruitment in Bosnia & Herzegovina?
Certainly! Our recruitment experts have extensive experience in hiring top talent globally. We provide comprehensive support in recruiting, hiring, and managing your workforce, regardless of your location.
How many public holidays do employees receive in Bosnia & Herzegovina? Are they paid?
Bosnia & Herzegovina observes 13 national holidays, and most employees are entitled to a paid day off. Working on these days includes a higher hourly rate depending on your employment contract.
What risks do employers face in Bosnia & Herzegovina?
Employers must adhere to strict labor laws and regulations to avoid penalties and fines. Partnering with an experienced PEO in Bosnia & Herzegovina ensures compliance during seamless
Can a Bosnia & Herzegovina PEO in 2026 employ both Bosnian citizens and foreigners?
Absolutely! INS Global facilitates the recruitment and management of a diverse workforce remotely, making it simple to hire both Bosnian citizens and foreigners.
A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.