What do you need to know to hire in Bosnia and Herzegovina?
Bosnia and Herzegovina runs employment law through two entities, the Federation and Republika Srpska, plus the Brcko District. So the rules for one hire depend on where that person sits. Teamed confirms the right ones for each role. Each guide below takes one layer.
· Bosnia and Herzegovina guide
How does Teamed handle hiring in Bosnia and Herzegovina for you?
Teamed becomes your legal employer of record in Bosnia and Herzegovina for from $599 per employee per month, with zero FX mark-up in any currency.
Payroll, contracts, and the local employment rules run on one platform, paid in convertible marks.
Real HR and legal experts manage every hire here, from the first offer letter to the final payslip. An actual person, not a chatbot or a pooled queue, handles your Bosnia and Herzegovina team alongside EOR, contractor onboarding, and entity payroll on one platform. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
A contractor here who converts to employment keeps their record, and that same employee can graduate from EOR to your own local entity without re-onboarding. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first hire here, until it isn't.
- Bosnia and Herzegovina has two separate labour codes, not one. The Federation of Bosnia and Herzegovina and Republika Srpska each set their own employment rules. The Brcko District adds a third set. Where your hire is based decides which rules apply. Most EOR guides flatten this into a single national figure and get it wrong.
- The currency is the convertible mark, and it is pegged to the euro. The mark is fixed to the euro at a set rate under a currency board. So your costs in marks move with the euro, not with a floating local rate. Teamed pays your team in marks with zero FX mark-up.
- You do not need a local company to hire here. Setting up your own entity in Bosnia and Herzegovina means registering in one of the entities and meeting its local filing rules. An Employer of Record hires for you from day one instead. The EOR vs entity guide runs the trade-off.
Bosnia and Herzegovina is a single country with two legal systems for work. The Federation, Republika Srpska, and the Brcko District each set their own rules.
That means the answer to a question depends on where your hire sits. Teamed confirms the current figures for each role and entity before you commit.
Teamed runs your payroll, contracts, and compliance through a vetted local partner. You pay one flat fee in convertible marks.
This page is the map. Each guide below is the detail.
per employee per month to hire compliantly in Bosnia and Herzegovina, one fixed fee. Zero FX. No setup fee. The price your finance team can forecast against.
How much does it cost to hire an employee in Bosnia and Herzegovina in 2026?
Your cost is the salary, the employer contributions set by local law, plus Teamed's flat fee.
Teamed's fee is one number per employee per month, with zero FX mark-up in any currency.
Employer costs in Bosnia and Herzegovina depend on the entity where your hire sits. The Federation and Republika Srpska set contribution rules separately. Teamed confirms the current employer contributions for your specific role before you commit, so the total cost is clear up front.
Teamed's price is one flat number, paid in convertible marks, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits pass through at cost on every invoice.
The full breakdown, with current local figures confirmed for your role, is in the cost guide.
Read the full Bosnia and Herzegovina cost breakdown
Do you need a local entity to hire employees in Bosnia and Herzegovina?
No. An Employer of Record runs local payroll and contracts from day one.
Your own entity becomes worth it once your headcount in one place grows.
Setting up your own company in Bosnia and Herzegovina means registering in the Federation, Republika Srpska, or the Brcko District, then meeting that entity's local filing rules. It takes time and brings ongoing local obligations. An Employer of Record is faster and cheaper at low headcount. Teamed runs payroll, contracts, and compliance through a vetted local partner from day one.
The crossover point depends on local salary levels and your accounting costs. Teamed monitors it and tells you when an owned entity starts to make sense. The EOR vs entity guide runs those numbers.
Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own local entity on one platform under Teamed's Graduation Model, with tenure preserved.
Read the full Bosnia and Herzegovina EOR vs entity guide
What benefits must you provide employees in Bosnia and Herzegovina?
Local law sets a floor for paid leave, sick pay, and parental leave.
The exact entitlements depend on whether your hire sits in the Federation or Republika Srpska.
Bosnia and Herzegovina sets statutory minimums for paid annual leave, public holidays, sick pay, and parental leave. Because the Federation and Republika Srpska each have their own labour code, the precise floor differs by entity. Teamed confirms the current entitlements for each hire so nothing is missed.
Employers here often add benefits beyond the floor to compete for skilled staff. Teamed sets up local-standard contracts and runs the benefits your team offers. The benefits guide covers each entitlement once the figures are confirmed for your role.
Read the full Bosnia and Herzegovina hiring guide
What are payroll taxes in Bosnia and Herzegovina in 2026?
Employers and employees both pay social contributions set by local law.
The rates differ between the Federation and Republika Srpska, so the entity matters.
Payroll in Bosnia and Herzegovina runs monthly, paid in convertible marks. Income tax and social contributions are set separately by the Federation and Republika Srpska, so the rate that applies depends on where your hire is based. Teamed confirms the current employer and employee figures for your role before payroll starts.
Teamed runs all employee deductions and remittances to the correct local authority. You see each line itemised on every invoice. The tax and payroll guide sets out the rates once they are confirmed for your entity.
Read the full Bosnia and Herzegovina tax and payroll guide
How do you terminate an employee in Bosnia and Herzegovina?
Notice and severance are set by local law, and they vary by entity.
You need a valid reason and the right process for a fair dismissal.
Ending employment in Bosnia and Herzegovina follows the labour code of the entity where your hire sits. Notice periods and severance for redundancy are set by local law and differ between the Federation and Republika Srpska. A fair dismissal needs a valid reason and the correct steps. Teamed confirms the current notice and severance rules for each case.
Getting the process wrong can turn into a claim. Teamed's HR and legal experts run the termination to the local standard, so the exit is clean. The termination guide runs the full process once the figures are confirmed.
Read the full Bosnia and Herzegovina termination and severance guide
What should you know before hiring in Bosnia and Herzegovina?
Two things catch new employers out. The first is that there is no single national labour code.
The second is that the convertible mark is pegged to the euro, so your costs track the euro.
The rules depend on where your hire sits. The Federation, Republika Srpska, and the Brcko District each run their own employment law. Two employees doing the same job in different parts of the country can face different rules. Teamed confirms the right ones for each person before you sign.
The convertible mark is fixed to the euro. A currency board pegs the mark to the euro at a set rate. So your payroll costs in marks move with the euro, not with a floating local rate. Teamed pays your team in marks with zero FX mark-up. The hiring guide covers safe process in detail.
Read the full Bosnia and Herzegovina hiring guide
Frequently asked questions
Can a US company hire in Bosnia and Herzegovina without an entity?
Yes. An Employer of Record like Teamed runs local payroll, contracts, and compliance through a vetted local partner. You direct the work. Teamed becomes the legal employer of record. Setting up your own company means registering in the Federation, Republika Srpska, or the Brcko District and meeting that entity's local filing rules.
How much does it cost to hire an employee in Bosnia and Herzegovina?
Plan on the salary, the employer contributions set by local law, and Teamed's flat fee. Employer contributions differ between the Federation and Republika Srpska, so Teamed confirms the current figures for your role before you commit. Teamed's fee is one number per employee per month, paid in convertible marks, with zero FX mark-up in any currency pairing.
What currency do you pay employees in Bosnia and Herzegovina?
You pay in the convertible mark (BAM). The mark is pegged to the euro under a currency board, so costs in marks track the euro rather than a floating rate. Teamed runs payroll in marks with zero FX mark-up, and the rate shows on every invoice.
Why does location within Bosnia and Herzegovina matter for hiring?
Bosnia and Herzegovina has more than one labour code. The Federation of Bosnia and Herzegovina and Republika Srpska each set their own employment rules, and the Brcko District adds a third. So leave, notice, severance, and contributions can differ depending on where your hire sits. Teamed confirms the right rules for each role and entity.
What is the notice period in Bosnia and Herzegovina?
Notice and severance are set by local law and vary between the Federation and Republika Srpska. There is no single national figure. A fair dismissal also needs a valid reason and the correct process. Teamed confirms the current notice and severance rules for your specific case before any termination.
How fast can Teamed onboard an employee in Bosnia and Herzegovina?
Once terms are confirmed, Teamed sets up a local-standard contract and runs onboarding through its vetted local partner. You get one flat fee per employee per month, paid in convertible marks, with no setup fee and no exit fee. Salaries, taxes, and benefits pass through at cost, itemised on every invoice.
The thing new employers miss about Bosnia and Herzegovina is that it is one country with more than one labour code. The Federation and Republika Srpska set their own rules, and the Brcko District adds a third. The right answer for a hire in Sarajevo can differ from the right answer for a hire in Banja Luka. That is not a hard rule once you know it. It is consistently costly when you do not, so we confirm the figures per role and per entity before anything is signed.
Bosnia and Herzegovina runs two labour codes plus the Brcko District, and the convertible mark is pegged to the euro.
Where your hire sits decides the rules, so a single national figure is the wrong place to start.
Confirm the right Bosnia and Herzegovina figures for each role before that hire, not after the first claim.
