Salary calculator

We are a leading company in bookkeeping, accounting and financial advisory in Bosnia and Herzegovina, with many years of experience working with companies and sole traders of all sizes and sectors.

Republika Srpska

Federation of BiH

Salary calculation

Gross salary

Contributions

Salary before tax

Personal allowance

Tax

Solidarity contribution

Payment to employee

Total liabilities

For 2026, the minimum wage in Republika Srpska is BAM 1,000.00 net (BAM 1,476.23 gross) as the general minimum. The level of the minimum wage in 2026 depends on the level of education and the complexity of the work.

Minimum wage amounts by level of education:

• General minimum (no specific requirement): BAM 1,000.00 net (BAM 1,476.23 gross)

• Secondary education (3 years): BAM 1,050.00 net (BAM 1,558.19 gross)

• Secondary education (4 years): BAM 1,100.00 net (BAM 1,672.13 gross)

• Higher education (VŠS): BAM 1,350.00 net (BAM 2,081.97 gross)

• University education (VSS): BAM 1,450.00 net (BAM 2,245.90 gross)

Salary with seniority bonus and meal allowance

Gross basic salary

Years of service

years

Gross seniority bonus

Gross meal allowance

Gross total

Contributions

Salary before tax

Personal allowance

Tax

Solidarity contribution

Payment to employee

Total liabilities

Note: The seniority bonus increases the basic salary by 0.3% for each completed year of service. The meal allowance is 0.85% of the previous year's average gross salary per working day, which comes to BAM 18.24 gross per day.

Service contract / Supplementary work

Gross fee

Pension contributions

Income

Income tax

Net fee

Total liabilities

Note: Pension contributions are 18.5% of the gross fee. Income tax is 13% of income (gross fee less pension contributions). Total liabilities = pension contributions + income tax.

Gross fee

Pension contributions

Income

Standard deductible costs

Income tax

Net fee

Total liabilities

Note: Since 1 January 2018 anyone earning income from copyright must pay pension contributions, regardless of whether they are insured on another basis. Previously contributions applied only if the person was not otherwise insured.

Under Article 64 of the Income Tax Rulebook, deductible costs are:

• 60% – sculpture, tapestry, ceramics, mosaic, photography, mural painting, frescoes, prints, marquetry, enamel, costume design, fashion design and similar.

• 50% – painting and graphic works, industrial design, small sculpture, visual communications, interior architecture, horticulture, set design, scientific/professional/literary works, translation, music, film, restoration, acting, recitation, recordings and similar.

• 40% – performers of popular and folk music, phonograms, videograms, broadcasts, databases and other copyright and related rights not in the two groups above.

Temporary and occasional work

Gross payment

Contributions

Income

Tax

Net payment

Total liabilities

Note: Temporary and occasional work is subject to a mandatory pension and disability insurance contribution of 18.5% of the gross payment, and a health insurance contribution of 12.5% of the gross payment. Income tax is 13% of income (gross payment less contributions).

Lease

Gross rent

Standard deductible costs 20%

Income

Tax

Net rent

Total liabilities

Note: For leases, standard deductible costs of 20% of the gross rent are recognised. Income tax on rental income is 13% of income (gross rent less standard costs). Total liabilities equal the tax amount, since no contributions are payable on rental income.

Salary calculation - Federation of BiH

Gross salary

Personal allowance coefficient

1) Contributions payable by the employer

Pension insurance

Health insurance

Unemployment insurance

Total

2) Contributions payable by the employee

Pension insurance

Health insurance

Unemployment insurance

Total

Income tax and other levies

Total contributions

Salary before tax

Personal allowance

Tax base

Advance tax payment

Salary after tax (net)

Other levies

Disability levy

Natural disaster levy

Water levy

Total liabilities

Gross salary calculation — helper table

Salary after tax (net)

Personal allowance coefficient

Gross salary

Note: Salary calculation for the Federation of BiH. Employer contributions: pension 17%, health 12.5%, unemployment 1.5%. Employee contributions: pension 2.5%, health 2%, unemployment 0.5%. Income tax is 10% of the base (salary before tax less personal allowance). The personal allowance at coefficient 1.00 is BAM 300.

Service contract - Federation of BiH

Gross amount

Recognised expenses

Bases and contributions

Calculation base

Pension contributions

Health insurance

Income tax

Tax base

Income tax

Net payment and other levies

Net amount

Natural disaster levy

Tax on the levy

Total liabilities

Note: Service contract in the Federation of BiH. Recognised expenses are 20% of the gross amount. The contribution base is the gross amount less recognised expenses. Pension contributions are 6% of that base and health insurance 4%. Income tax is 10% of the tax base (gross amount less recognised expenses and contributions). The natural disaster levy and the tax on it are each 0.5% of the net amount.

Gross amount

Recognised expenses

Base and contributions

Calculation base

Pension contributions

Health insurance contributions

Income tax

Tax base

Income tax

Net payment and other levies

Net amount

Natural disaster levy

Water levy

Total liabilities

Note: Copyright contract in the Federation of BiH. Recognised expenses are 30% of the gross amount. The contribution base is the gross amount less recognised expenses. Pension contributions are 6% of that base and health insurance 4%. Income tax is 10% of the tax base (gross amount less recognised expenses and contributions). The natural disaster and water levies are each 0.5% of the net amount.

Severance calculation - Federation of BiH

Employee's last three salaries — 1

Employee's last three salaries — 2

Employee's last three salaries — 3

Average of the last three salaries

Start date

End date

Total years for payout

YRS

Tax-free severance (70%)

Minimum severance (1/3)

Maximum severance (6x)

Last three salaries per official statistics

Statistical salary 1

Statistical salary 2

Statistical salary 3

Average of the last three salaries (statistics)

Severance per statistics (6 average salaries)

Notes:

• Tax-free severance: 70% of the average × years of service (Art. 14(1)(3)(g))

• Minimum severance: one third of the average × years of service (Art. 111(2) Labour Act)

• Maximum severance: six average salaries (Art. 111(3) Labour Act)

• Years are calculated as the total number of months divided by 12

Accounting services

Tax representative

Financial expert reports

Capital valuation

Legal services for companies

Virtual office

Salary calculator