What is the Minimum Wage in Bosnia and Herzegovina?
What is the minimum wage in Bosnia and Herzegovina? Listed below are the basic facts about the minimum wage in the country, the average salary and bonuses, and the impact of the minimum wage on poverty. You can also read more about the changes to the minimum wage in Bosnia and Herzegovina. The minimum wage in Bosnia and Herzegovina is 406 convertible maraka per month. In Bosnia, employees expect to be paid on the 25th of every month.
Changes in minimum wage
In this paper, we analyze the impact of changes in minimum wage in Bosnia and Herzegoviny (BiH). BiH is comprised of the Bosnian Serb entity and the Bosniak (Bosnian Muslim)-Croat Federation. The net minimum wage in BiH increased from KM450 to KM520 per month, an increase of 15.5%. We use data from the Household Budget Survey (HBS) of 2015 to estimate the effect of four different minimum wage increases. To make this estimate, we use the minimum wage level in 2015 and the previous minimum wage level in order to find the impact of these changes on poverty, unemployment, and income inequality.
In both entities, employees have the right to organize unions, which is a major benefit for both parties. While overtime is generally prohibited in Bosnia and Herzegovina, it is permitted when there is an emergency or sudden operational need. Moreover, the working week in both entities is 52 hours and 60 hours for seasonal workers. In addition to the minimum wage, employees in Bosnia and Herzegovina expect to receive their pay on the 25th of the month.
Average salary in Bosnia and Herzegovina
The average salary in Bosnia and Herzegovina is approximately 26,100 BAM per year. The lowest paying occupation is kindergarten teacher, earning about $640. The highest paying profession is headmaster. Salary levels in Bosnia and Herzegovina vary considerably. Salaries may vary by gender, age, experience, and location. The table below shows the average salary by job in Bosnia and Herzegovina. To learn more, visit the website of the government-run Federation of Bosnia and Herzegovina.
In BiH, the average monthly net salary was 962 BAM in September, up 1.1 percent from December last year and five percent from September 2017. The lowest paid occupations in BiH were accommodation services, food preparation and serving, construction, administrative and support service activities, and transportation and warehousing. The average monthly net salary is higher in construction than in most other sectors. However, salaries are lower in the private sector than in the public sector.
Bonuses in Bosnia and Herzegovina
While bonuses are rarely mandatory, they are considered an important part of employee compensation in Bosnia and Herzegovina. According to the World Bank, 39% of employees in Bosnia and Herzegovina reported receiving bonuses in the past year, while 61% did not. Bonuses typically range from 2% to 7% of a person’s basic salary. Bonus amounts are typically proportional to performance, with individual performance bonuses being the most common type. Company performance bonuses, on the other hand, are awarded for sharing in a company’s profits.
Companies in Bosnia and Herzegovina can provide benefits and compensation to their employees without opening a subsidiary in the country. In Bosnia and Herzegovina, Globalization Partners can offer services in outsourcing benefits and compensation in this country. If you are interested in expanding your business in this region, contact Globalization Partners to learn more about Bosnia and Herzegovina benefits outsourcing. Once you’ve decided whether Bosnia and Herzegovina is the right choice for your company, make sure to research the country’s laws regarding bonuses and benefits.
Impact of minimum wage increase on poverty
The minimum wage is a labour market policy in Bosnia and Herzegovina that is often used to combat poverty. However, it can also have a negative effect on income inequality. In this paper, we examine the impact of an increase in the minimum wage on income inequality and poverty by using data from the 2015 Household Budget Survey and bih-mod to simulate the impact of four proposed increases in the minimum wage.
The Republika Srpska and the Federation of Bosnia and Herzegovina have both implemented employment retention schemes to combat poverty. The latter is more progressive and includes a wage subsidy. The former covers all contribution costs associated with a particular wage. However, the subsidy for employers is only moderately progressive. It is also regressive. Despite the positive impact, however, the minimum wage increase in Bosnia and Herzegovina has not yet made a difference in poverty.