Employer of Record in Bosnia and Herzegovina

For companies building teams of 10 or more in finance, accounting, HR/payroll, BD, operations, or IT — not for individual hires.
Talk to us about Bosnia and Herzegovina

Why companies build teams in Bosnia and Herzegovina

Lundi supports compliant employment in Bosnia and Herzegovina for specialist hires and small teams. Sarajevo has a growing tech sector with strong cost arbitrage. For larger teams we typically recommend Poland, Romania, or Serbia — deeper talent pools and more mature international-employer infrastructure.

Languages

Bosnian

Payroll Frequency

Monthly

Currency

EUR

Capital City

Sarajevo

Employer Tax Rate

12.30%

Bosnia and Herzegovina has a developing tech and outsourcing sector concentrated in Sarajevo, with notable growth in software development serving Western European clients. Bosnia-Herzegovina convertible mark (BAM) is the local currency, pegged to the euro. Employer social contributions are moderate. Strong fit for specialist engineering hires, small distributed teams, or cost-driven operations valuing Western Balkans presence. For larger teams Lundi typically recommends Poland, Romania, or Serbia.

Cost of Employment in Bosnia and Herzegovina

In Bosnia and Herzegovina, professional recruitment agency fees range from 22-27% of the first-year annual base salary of a recruited employee. Recruitment agencies also require an upfront retainer and payment in advance installments of the agency fee based on milestones such as start of recruitment, presentation of candidates, and scheduling interviews with a candidate shortlist.

We know this might sound overwhelming—but it doesn’t have to be. A solution like Lundi eliminates the barriers for you. With Lundi, you can recruit talent across 70+ countries, easily managing recruitment—all in one, easy-to-use platform. Get an overview of what you need to know when hiring in Bosnia and Herzegovina below.

Talk to us about Bosnia and Herzegovina

Employer Tax Costs in Bosnia and Herzegovina

In Bosnia and Herzegovina, social contributions for employers are 10.5% and include unemployment insurance, disability fund, and unemployment contributions. Employers are also required to make contributions for accident, water, and disability, totalling 1.8% of an employee’s salary.

Employee Income Taxes in Bosnia and Herzegovina

All employees are taxed 10% regardless of their income bracket. Employees also pay social security contributions of approximately 31%. That includes pension, health, and unemployment tax.

Employee Probation in Bosnia and Herzegovina

In Bosnia and Herzegovina, probationary periods must be no longer than six months.

Employee Overtime in Bosnia and Herzegovina

A standard workweek in Bosnia and Herzegovina is 40 hours. Employees are entitled to a break of at least 30 minutes when working more than 6 hours daily, and at least a continuous period of 24 hours weekly.On request, employees can perform up to eight hours of overtime a week. The amount to be paid varies by industry and is based on collective agreement.

Employee Notice in Bosnia and Herzegovina

In Bosnia and Herzegovina, employees are required to give a minimum of seven days notice, and a maximum of 30 days notice. 

Employers are required to give a minimum notice period of 14 days, and a maximum of three months notice. 

Employer can terminate employment with notice because of:

  • Economical, technical, or organisational reasons
  • If the employee is unable to perform their work duties

No notice is required if either party is in severe breach of contract.

In case of a violation of work duties, notice of termination can be given within 60 days of finding out about the violation, and up to a year after the incident took place.

Termination in Bosnia and Herzegovina

Minimum severance payments are payable on redundancy if someone has been employed for two years. The payment would be the lower of:A third of the employee's average salary in the three months before termination, times their total number of years of employment; andSix average salaries of the employee in the three-month period before the termination

How Lundi works in Bosnia and Herzegovina

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
Talk to us

Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
Talk to us

Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
Talk to us

Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building international teams of 10 or more — typically in finance, accounting, HR/payroll, BD/sales, operations, or IT. Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.