The labor market of Republic of Srpska has undergone significant changes over the past ten years and is still very
dynamic. It is characterized by a certain unemployment rate, which from the investor's point of view can be viewed
as a potential.
Given that employment is one of the priorities of the Government of the Republic of Srpska, the Employment Action Plan for 2021 focuses on two strategic goals:
1. Increase employment and economic activity of the population in the Republic of Srpska,
2. Maintain existing and create new jobs in the economy of Republika Srpska.
We single out some of the incentive measures with a special emphasis on the economy, such as:
Programme for employment and self-employment of target categories in the economy and
Programme to support the economy through refunds of taxes and contributions for new employment.
In the Republic of Srpska, there is a public employment service - the Public Employment Service of the Republic of
Srpska, and 23 private employment agencies. According to surveys of the Employment Service, about 70% of employers
cooperate with this Service.
The Employment Service of Republic of Srpska consists of a central service, 7 branches and 59 bureaus in almost all
cities and municipalities of the Republic of Srpska. More about the Employment Service, as well as current
employment projects, can be found at the following internet address www.zzrs.org.
The Labor Law of the Republic of Srpska (Official Gazette of the Republic of Srpska, No. 01/16, 66/18) regulates
labor relations, rights, obligations and responsibilities arising from employment and other labor relations in the
Republic of Srpska, unless otherwise specified by special laws.
The rights, obligations and responsibilities from the employment relationship are regulated by the collective
agreement, and by the rulebook and the employment contract only when it is determined by the Labor Law of the
Republic of Srpska.
Employment - contracts and conditions
The employment relationship is based on an employment contract which regulates the rights, obligations and
responsibilities between employers and workers.
The general conditions for establishing an employment relationship by concluding an employment contract between the
employer and the employee are regulated by the Labor Law(Official Gazette of the
Republic of Srpska, No. 01/16 and
Special conditions for employment are determined in relation to a specific job and are determined by the collective
agreement and the rulebook.
In addition to the general conditions determined by law, conditions determined by the collective agreement and
general acts of the employer, the foreigner must also meet a special requirement to have a work permit for
concluding an employment contract issued by the Employment Service of the Republic of Srpska.
The form and content of the employment contract is defined by Article 35 of the Labor Law and the Rulebook on Forms
of Employment Contracts (Official Gazette of the Republic of Srpska, No. 77/18).
You can find out more about the legislation governing this area on the website of the Ministry of Labour, War
Veterans and Disabled People's Protection.
Vacations and absences
Details on workers' vacations are prescribed by Articles 75 to 95 of the Labor Law (Official Gazette of the Republic
of Srpska No. 1/16 and 66/18).
Termination of the contract
Termination of the employment contract is possible for several reasons, pursuant to Article 175 of the Labor Law(Official Gazette of the Republic of Srpska, No. 1/16, 66/18). Termination of employment is defined in more detail
in Articles 175 to 197 of the Labor Law (Official Gazette of the Republic of Srpska, No.
Pension and disability insurance
The Law on Pension and Disability Insurance (Official Gazette of the Republic of Srpska, No. 134/11, 82/13
103/15), establishes mandatory pension and disability insurance and regulates the rights and obligations based on
that insurance. Also, the law establishes the possibility for persons who are not covered by compulsory insurance to
be insured for voluntary pension and disability insurance. The system of mandatory contributions for financing
pension and disability insurance is regulated by the Law on Contributions(Official Gazette of the Republic of
Srpska, No. 114/17, 112/19), and the payer of contributions in terms of this law is the payer of income which is the
basis for payment of contributions in accordance with this law.
Pension and disability insurance rights are personal rights and cannot be transferred to other persons or inherited.
The scope of the rights depends on the length of the insured's pension period and the amount of wages and insurance
bases on which the contribution for pension and disability insurance has been paid.
Insured risks in terms of the Law are age, disability and death of the insured or beneficiary. Depending on the
occurrence of the insured risk, the rights from pension and disability insurance are for old age - old age pension,
for disability - disability pension and rights based on the remaining working ability, for death of the insured,
i.e. personal pension beneficiary - family pension. The conditions for acquiring these rights are determined by law.
The Pension and Disability Insurance Fund has been established to exercise the rights from pension and disability
insurance, as well as for the identified needs and interests in the field of this insurance. News from the field of
pension and disability insurance are published on the Fund's website, as well as the answers to various questions in
A foreign citizen and a stateless person who is employed by a foreign legal or natural person in the territory of
the Republic is an insured worker within the meaning of the Law on Pension and Disability Insurance, unless
otherwise stipulated by an international agreement, as well as a person employed by an international organisation,
diplomatic or consular representative offices, if such insurance is provided for in an international social security
In regard to the pension and disability insurance, a foreign citizen and a stateless person, who is employed by a
domestic legal or natural person in the territory of the Republic, has the same treatment as a citizen of the
Republic of Srpska.
Compulsory health insurance covers all citizens of the Republic of Srpska and other persons in accordance with the
Law on Health Insurance (Official Gazette of the Republic of Srpska No. 18/99, 51/01, 70/01, 51/03, 57/03, 17 / 08,
01/09, 106/09, 39/16, 110/16, 94/19, 44/20). This law regulates the system of compulsory and extended health
insurance, insurance rights, the manner of exercising rights and the principles of private health insurance.
According to the Law on Health Insurance, citizens of countries with which an international agreement on social
(health) insurance has been concluded, receive health care in the Republic of Srpska to the extent determined by the
agreement. Currently, BiH has signed social security agreements with the following countries: Serbia, Montenegro,
Croatia, Macedonia, Slovenia, Hungary, Turkey, the Netherlands, Austria, Germany, Italy, Belgium, Luxembourg, Great
Britain, the Czech Republic, Slovakia. Citizens of these countries are entitled to health insurance during their
temporary stay in the Republic of Srpska. In order to exercise that right, they need to obtain an appropriate health
insurance certificate in their home country before arriving in the Republic of Srpska, and to apply for health
insurance in the Republic of Srpska with that certificate.
Insured persons of Austria and Slovenia who have a European Health Insurance Card can also use it during their
temporary stay in the Republic of Srpska, i.e. BiH. This means that it is not necessary for Austrian and Slovenian
insured persons to obtain forms A / BIH 3 or SI / BIH 3 before arriving in the Republic of Srpska, as was the case
before. Namely, the Health Insurance Fund of the Republic of Srpska issues a sick leave certificate to Austrian and
Slovenian insured persons during their temporary stay in the Republic of Srpska, based on the European Health
Insurance Card (EHIC) or a certificate that temporarily replaces EHIC - PRC. In exceptional cases, when a foreign
insured person is admitted to the hospital and has not been issued a sick leave certificate, the health institution
will obtain the necessary data from EHIC / PRC (photocopy of EHIC / PRC) and forward them to the organisational unit
of the Health Insurance Fund of Republic of Srpska, which will then deliver sick leave certificate.
The use of the European Health Insurance Card in the Republic of Srpska for insured persons of Austria and Slovenia
is possible thanks to the agreement reached with these countries, while for now, insured persons from other
countries with which BiH has signed agreements, must first obtain appropriate forms before arriving in the Republic
of Srpska and BiH.
Insured persons of countries with which BiH has signed an agreement on social (health) insurance can use health care
services in health care institutions that have a contract with the Health Insurance Fund of the Republic of Srpska
and are obliged to follow the procedures provided by the regulations of the Republic of Srpska.
More information on health insurance of foreign citizens and health insurance in general in the Republic of Srpska
can be found on the Internet address http://www.zdravstvo-srpske.org/
Safety and health at work
Occupational safety and health is provided and implemented by every legal and natural person who employs one or more
workers. The employed person enjoys protection and health at work in accordance with the Law on Occupational Safety
(Official Gazette of the Republic of Srpska, No. 1/08 and 13/10), and bylaws in the field of protection and health
More information in this area can be found on the website of the Ministry of Labor and Veterans' and Disabled
Protection (area of occupational safety).