Payroll in BiH — Guide for Employers

Everything employers need to know about contributions, taxes and legally compliant payroll for employees.

Payroll is one of the most sensitive aspects of business operations. Every mistake directly affects employees' rights and the company's obligations to the state.

When agreeing on a salary with an employee, it is important to clearly define whether you are agreeing on a net or gross amount. Net salary is what the employee receives in their bank account, while gross salary includes the net amount plus income tax (10%) and employee contributions.

Allowances such as meal subsidies, transport and holiday pay are also subject to certain rules. Meal allowance is tax-exempt up to a limit defined by law.

Due to frequent changes in employment and tax regulations, entrusting payroll processing to a professional agency reduces the risk of errors and ensures full compliance with the law.