Social security contributions

Social security contributions paid by the employer and the employee

THE AVERAGE WAGES IN BOSNIA AND HERZEGOVINA

The average net wage in Bosnia and Herzegovina in 2006 was 300 EUR.

In Republika Srpska, contributions are calculated on the basis of net wage. Net wage implies the income earned by the employee during regular working hours, plus some additional receipts like vacation allowance, paid sick leave, national holidays, paid leave, overtime and reduced working time, if it was not deliberate or envisaged as such.

In the Federation of BiH, there are contributions paid by the employer and those paid by the employee, on the basis of gross wage. Gross wage includes net salary earned by regular employment, plus contributions, taxes and participations.

In Brcko District, pension insurance contributions are regulated by Entity laws.

a) Employee’s share (withheld from the wage and paid directly by the employer):
• FBiH: 17% for pension insurance, 13% for health insurance, 2% for unemployment insurance, 5% tax on net wage, 0.50% tax on protection of natural disaster
(in total: 32% on gross wage and 5.5% on net wage).
• RS: 24% for pension insurance, 15% for health insurance, 1% for unemployment insurance, 2% for child protection and 0-15% tax on net wage (in total: 42-57% on net wage).
• Brcko District: 17% on gross wage for pension insurance for employees from FBiH, and 24% on net wage for employees from RS; 12% on gross wage for health insurance and 10% tax on net wage
(in total: 29% on gross wage, plus 10% on net wage for employees from FBiH, and 34% on net wage, plus 12% on gross wage for employees from RS).

b) Employer’s share:
• FBiH: 7% for pension insurance, 4% for health insurance, 0,50% for unemployment insurance (in total: 11,50% on gross wage).
• Brcko District: 7% on gross wage for pension insurance.
• In RS, no such contributions are paid.