Bosnia and Herzegovina is a country located in southeastern Europe on the Balkan Peninsula. The country borders Serbia, Croatia, Montenegro, and the Adriatic Sea. Bosnia and Herzegovina’s prime location makes it a very attractive place for companies that are looking to expand their business to southeastern Europe.

The minimum wage is BAM 590 per month, and a standard work week is 40 hours Monday to Friday. Any work past 40 hours is entitled to overtime pay with a maximum number of hours per week depending on the region, and in some districts pregnant employees or those who have recently given birth are not allowed to work overtime.

Parental Leave

Pregnant employees are entitled to 12 months of maternity leave, and can work part-time post-leave until the child turns 2 years old. Pregnant employees are obligated to take at least 42 days of leave after the birth in FBiH and 60 days in Republika Srpska. Fathers in FBIH are entitled to 7 days of paid paternity leave after the birth, and in the Republic of Srpska/District of Brsko they are entitled to 3 days of leave.

Sick Leave

Employees in Bosnia and Herzegovina are entitled to 5 days of paid sick leave each year.

Paid Leave

There are 22 public holidays in Bosnia and Herzegovina. Employees in the entire country are entitled to 20 days of paid time off each year, while employees in FBiH can take another 10 days for a total of 30 days off per year.

Process

Employers are able to terminate employee contracts for reasons that are business-related, personal, or due to misconduct. If the termination is due to misconduct, the employer needs to provide verbal warnings and give the employee a chance to explain their actions. If the employee makes another violation within 12 months of their third warning, the employer can terminate the contract without notice or severance pay.

Notice Period

Employers are required to give a minimum notice of 14 days (with a maximum of 3 months).

Severance Pay

Unless an employee is terminated for misconduct, employees are usually entitled to a severance payment determined either by collective bargaining or a stipulation in the employment contract. The severance payment can be no less than 1/3 of the employee’s monthly wage for each year employed at the company.

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