Human Resources
Introduction
Manpower Resources
Labor Legislation
Working Time, Time off and Overtime
Annual Leave
Sick Leave
Introduction
Bosnia and Herzegovina has experienced severe challenges in the labor market due to the unequivocal destruction of human and capital resources during the war 1992-1995. Furthermore, transition from socialist economy to liberal market economy in the postwar period coupled with effects of migration added to further complexity.
Even though the strengthening and increase in employment has been a priority during the postwar period, a significant number of job seekers are still available in Bosnia and Herzegovina. The table below shows figures on the unemployment structure in Bosnia and Herzegovina for November 2011. Nevertheless, it should be noted that due to the social security benefits offered to the unemployed, certain portions of the officially unemployed population is artificial representing those working in gray economy but enjoying benefits of welfare state.
An army of unemployed but skilled job seekers is creating a downward pressure on the labor cost in Bosnia and Herzegovina. On average, employees of the financial sector are best paid with average of net monthly earnings equivalent to EUR 669, followed by employees of the energy sector while the lowest average of net monthly earnings of EUR 278 is recorded by employees in hotels and restaurants. The average net monthly earnings in Bosnia and Herzegovina for month November 2011 is equivalent to EUR 421.30.
Agency for Statistic of Bosnia and Herzegovina, November 2011
Average paid off net earnings per person in employment, November 2011
Agency for Statistic of Bosnia and Herzegovina, November 2011
Competitiveness of labor force in Bosnia and Herzegovina within the region for year 2010 is given below.
Average net salary in Region – Bosnia and Herzegovina 2010
Source: Statistics of countries in the region, FIPA
Average net salary by activity – Bosnia and Herzegovina 2010
Source: Statistics of countries in the region, FIPA
Manpower Resources
During the last ten years, the labor market of Bosnia and Herzegovina has undergone significant changes and is still very dynamic. It is important to note that labor structure share of highly educated job-seekers is growing.
Labor Legislation
In the Federation of Bosnia and Herzegovina:
The Labor Law of FBiH (Official Gazette of FBiH No. 43/99, 32/00, 29/03)
General Collective Agreement of FBiH (Official Gazette of FBiH, No. 54/05)
In the Republic of Srpska:
Labor Law of the Republic of Srpska (Official Gazette of RS No. 55/07)
General Collective Agreement of RS (Official Gazette of RS, No. 40/10)
Working Time, Time off and Overtime
Working time:Full time working hours are limited to 40 hours per week. The working week lasts 5 days (Monday-Friday).
Time off:
Paid leave:In Republic of Srpska workers are entitled to paid leave of minimum 5 working days, in Federation of Bosnia and Herzegovina of minimum 7 working days per calendar year in cases of: wedding, wife’s birth-giving, serious disease or death of a family member and in other cases provided under the collective agreement and rule book.
Unpaid leave:The employer may grant an employee, at his request, an absence from work without salary compensation- unpaid leave.
Exceptionally, employer is obliged to enable employee to be absent from work up to four days during one calendar year, to meet his religious/traditional needs, and the absence of two days shall be used with salary compensation - paid absence from work.
Annual Leave
The minimum annual leave is 18 working days, according to labor laws of Bosnia and Herzegovina.
Sick Leave
Temporary absence from work because of illness or injury is regulated by health insurance regulations that specify medical documentation, duration of sick leave, payment of compensation and all other issues related to this type of absence.
An employee shall be entitled to salary compensation for the period of temporary inability to work due to illness or injury.
Salary compensation during a break or absence from work prescribed under the Law, collective agreement, rule book or employment contract shall be paid by the employer, unless this or some other law specifies otherwise.
An employee shall be entitled to salary compensation from the first day of the temporary inability to work and until such inability lasts
Salary compensation is determined in the minimum amount of 80% of the basis for compensation. Salary compensation can not be lower than the minimum salary paid for the month for which compensation is determined.