This content is from: Bosnia & Herzegovina

Bosnia and Herzegovina: Special solidarity contribution entered into force in Bosnia and Herzegovina

Dajana Topic
Because of the damages that the flooding has caused in May 2014, for a period of six or 12 months, employers and employees in Bosnia and Herzegovina (BiH), depending on the entity, are obliged to pay a special solidarity contribution to fund reconstruction projects. This contribution is payable on the net employment income.

As a result, the National Assembly of the Republic of Srpska (RS) adopted the Law on Special Solidarity Contribution on June 15 2014, for financing the flood damage reconstruction projects.

The law is applicable for the period June 1 2014 until May 31 2015.

To the account of Solidarity Fund for Reconstruction of RS, the contribution will be imposed and payable to the following:

  • Net employment income – payable at the rate of 3% divided equally between employers and employees;
  • Net income from independent activities – withheld by the payer at the rate of 20%; and
  • Pension income – paid in range of BAM 1-5 ($0.63 – $3) monthly, depending on the amount of pension.

The Federation of Bosnia and Herzegovina (FBiH) Parliament has adopted the amendment to the Law on Financing Support for Elimination of Consequences on Natural Disaster and Reconstruction of Areas affected by Natural Disaster on September 10 2014. The law affects the period from August 1 2014 to January 31 2015.

The contribution applies only to employees from the private sector. A special solidarity contribution on net employment income payable at the rate of 1% by employees of private companies will be withheld only with the written consent of the employee.

The amendments entered into force on October 2 2014.

Regarding other social security contributions on salaries in BiH, Table 1 represents the type of contribution and its percentage for all the entities in BiH.

Table 1
Contribution type



Brcko District
Pension insurance18.5%0%17%6%17 or 18.5%* 6%
Health insurance12%0%12.50%4%12%0%
Unemployment insurance1%0%1.50%0.50%1%0%
Child care contribution1.50%0%0%0%0%0%
* If FBiH pension laws are applicable the rate is 17%, but if RS pension laws are applicable the contribution rate is 18.5%.

Dajana Topic (
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