Default. May only be terminated in writing with a justified reason, statutory notice and, after 2 years' service, severance
Permitted up to 3 years total in FBiH (including renewals); beyond that converts to indefinite.
Overtime capped at 8 hrs/week in FBiH (10 in RS), premium set by collective agreement
Up to 6 months in FBiH (3 in RS), with at least 7 days' notice during probation
Civil service roles and licensed professions requiring local registration cannot be hired under the EOR model
In FBiH employers add 5% on top of gross (2.5% pension, 2% health, 0.5% unemployment — reduced from 10.5% by the July 2025 reform); in Republika Srpska there are no employer-side contributions
FBiH employees contribute 31% of gross (17% pension, 12.5% health, 1.5% unemployment), no cap, plus flat 10% income tax after a 300 BAM allowance. RS: 31% incl. child protection, 8% income tax.
In addition to statutory leave, employees are entitled to the following statutory benefits:
Employers are required to make contributions to social security programs on behalf of their employees. Benefits derived from social security are:
There is no separate workers' compensation scheme — workplace injuries are covered through the mandatory health and pension/disability insurance funds; many employers add private collective accident insurance.
Employees dismissed after at least two years of continuous service (other than for misconduct) are entitled to severance of at least one-third of their average monthly salary per year of service, commonly capped at six average salaries.
A 13th-month salary is not required by law, but collective agreements in FBiH typically mandate a vacation allowance (regres) and meal and transport allowances, which function as significant additional cash benefits.
P.S. our team speaks multiple languages and we'd love to chat in your preferred language if requested.
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. RemoFirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.
Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.
