Salary Calculator
Bosnia and Herzegovina

The salary calculator for Bosnia and Herzegovina estimates gross and net earnings by considering several factors. It begins with the gross salary, which includes base pay, bonuses, and any other agreed compensations. Then, the flat tax rate is applied, factoring in deductions for things like healthcare and education.

The calculator also considers social security contributions, which cover pensions and healthcare. After accounting for all taxes and contributions, it provides the net salary, or the actual amount the employee takes home.

Bosnia and Herzegovina's employer social security varies by entity within the country. Employers in the federation of Bosnia and Herzegovina contribute approximately 10.5% of an employee’s gross salary to social security, which includes:

-6% for health insurance
-4% for pension and disability insurance
-0.5% for unemployment insurance

In Republika Srpska, the employer’s contribution is around 31.6%, covering:

-10.2% for health insurance
-18.5% for pension and disability insurance
-1.7% for unemployment insurance
-1.2% for child protection

Bosnia and Herzegovina has a decentralised tax system, with tax laws varying between its two entities: the Federation of Bosnia and Herzegovina and Republika Srpska. Both entities operate a flat income tax rate of 10% on personal income, which is the same across Bosnia and Herzegovina. 

However, there are differences in deductions and allowances between FBiH and RS:

Federation of Bosnia and Herzegovina (FBiH):

Personal income tax rate is 10%. Employees can deduct a personal allowance (typically around BAM 300 per month). Deductions for dependents and certain expenses (like health insurance or education) are also allowed.

Republika Srpska (RS):

Personal income tax rate is 10%. A basic personal allowance is provided, generally around BAM 500 per month. Additional deductions are available for children, dependents, and certain social contributions.

Employers are subject to corporate income tax in Bosnia and Herzegovina, with a flat tax rate of 10% in both entities. This applies to companies’ profits.

*Please note that these rates can vary based on legislative changes.

Employees in Bosnia and Herzegovina are entitled to paid annual leave, with a minimum of 20 days. Moreover, employers in Bosnia and Herzegovina contribute to social security for pensions through a mandatory system. In Republika Srpska, employers contribute 18.5% of an employee's gross salary to pension and disability insurance, while in the Federation of Bosnia and Herzegovina, it’s the employee’s responsibility to contribute 17%. 

Maternity leave is well-protected, with mothers typically receiving between 12 months to 18 months of paid leave, depending on the entity and specific local laws. Paternity leave is less defined but can be granted in some cases, especially in Republika Srpska.

Some employers in Bosnia and Herzegovina offer meal allowances or vouchers. These benefits may be provided in the form of a fixed daily or monthly allowance. In addition to the public health insurance system, some employers in Bosnia and Herzegovina offer private health insurance plans. Employers may also provide transportation allowances, either as a direct payment or reimbursement for commuting costs.

In Bosnia and Herzegovina, the difference between gross and net salary refers to the deductions that occur before an employee receives their final take-home pay. Gross salary is the total amount an employee earns before any taxes or contributions are taken out. This includes the base wage, bonuses, and other forms of compensation that are agreed upon in the employment contract.

On the other hand, net salary is the amount the employee actually takes home after all necessary deductions have been made. These deductions typically include income tax, pension contributions, health insurance, and other social security charges.