Work and Employment

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 2022 focuses on four strategic goals:

  • 1. Increasing the employment of a more productive workforce by matching supply and demand in the labour market,
  • 2. Increasing internal mobility and labour availability,
  • 3. Improving the functioning of the labour market and social dialogue,
  • 4. Promoting social inclusion and ensuring equal opportunities.

We single out some of the incentive measures with a special emphasis on the economy, such as:

  • free trade area
    Programme to support economic development, improve business efficiency and introduce new technologies and
  • free trade area
    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.

Work relations

The Labor Law of the Republic of Srpska (Official Gazette of the Republic of Srpska, No. 01/16, 66/18, 91/21, 119/21) 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, 66/18, 91/21, 119/21).

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, 66/18, 91/21, 119/21).

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. 1/16, 66/18, 91/21, 119/21).

Pension and disability insurance

The Law on Pension and Disability Insurance (Official Gazette of the Republic of Srpska, No. 134/11, 82/13 and 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 this field.

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 agreement.

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.

Health insurance

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 of workers.

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).