Bosnia and Herzegovina Payroll — Doprinosi, Porez na Dohodak & Specifikacija

Establish which entity regime applies — Federation of BiH (FBiH), Republika Srpska (RS), or Brcko District (BD) — before any calculation begins. BiH has no unified national payroll system; rates, forms, and deadlines differ materially by entity. For BD employees, also determine the elected pension fund (RS or FBiH). Confirm the pay-period date for FBiH payrolls straddling 1 July 2025, when employer contribution rates dropped from 10.5% to 5.0%.

Compute employee social contributions, personal income tax withholding, and net pay using entity-specific rates. FBiH: employee contributions 31.0% of gross (pension MIO/PIO 17.0% + health 12.5% + unemployment 1.5%); employer contributions 5.0% from 1 Jul 2025 (2.5%+2.0%+0.5%) or 10.5% before that date; PIT 10% on gross minus contributions minus personal allowance (BAM 1,000/month basic for 2025); disaster 0.5% and water 0.5% charges on net salary. RS: employee contributions 32.8% (pension 18.5% + health 12.0% + unemployment 0.6% + child protection 1.7%); no employer-side contributions; PIT 8% on post-deduction base. BD: health 12.0% on gross plus elected pension fund rate; PIT 10% flat.

Produce the statutory salary/tax specification (Specifikacija uz isplatu plaća) and payslip for each employee. FBiH requires the specification to be delivered on the payment day (no later than one day after payment). RS requires the monthly salary-tax specification by the 10th of the following month. The GIP-1022 annual income certificate must be prepared for year-end. All documentation must separately itemise each contribution component and the PIT amount to allow cross-referencing with entity tax administration records.

Remit employee and employer contributions plus withheld PIT to the correct entity tax administration and funds. FBiH: payment to Porezna Uprava FBiH (PU FBiH) and entity funds (FZ MIO/PIO, ZZO) with salary payment, no later than end of the following month; references must include 'DOPRINOSI' and the month code (e.g. 08/2025). RS: payment to Poreska Uprava RS; no employer contributions but employee 32.8% and PIT must be remitted. BD: remit to Brcko District Tax Administration for health (12.0%) plus elected pension fund. National VAT (PDV) is remitted separately to UINO — do not conflate with entity payroll payments.

Prepare and file the annual personal income tax return where required, and issue GIP-1022 annual income certificates to employees. FBiH and RS annual PIT returns are due 31 March of the following year; BD annual return is due 28 February (not required if all PIT was settled via monthly withholding). Reconcile monthly withholdings against the annual PIT liability, identify any over- or under-withholding, and settle the balance with the entity tax administration.