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Finsoft knjigovodstvo

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Salary calculator for the Federation of BiH

Enter a gross or net salary and see the contributions, income tax, net pay and what the employer really pays. The calculation follows the rules in force since 1 July 2025: 31% contributions from the salary, 10% income tax and a 300 KM personal allowance.

Current rules in force since July 1, 2025

I know the
KM

Net salary

1,272.00 KM

Gross salary

2,000.00 KM

Total employer cost

2,130.00 KM

Deducted from the salary

Gross salary
2,000.00 KM
Contributions from the salary (31%)
620.00 KM
Pension and disability insurance (17%)
340.00 KM
Health insurance (12.5%)
250.00 KM
Unemployment insurance (1.5%)
30.00 KM
Personal allowance
300.00 KM
Taxable income
1,080.00 KM
Income tax (10%)
108.00 KM
Net salary
1,272.00 KM

On top, paid by the employer

Contributions on the salary (5%)
100.00 KM
Pension and disability insurance (2.5%)
50.00 KM
Health insurance (2%)
40.00 KM
Unemployment insurance (0.5%)
10.00 KM
Other levies
30.00 KM
Water fee (0.5%)
10.00 KM
Natural disaster protection fee (0.5%)
10.00 KM
Disabled persons' fund (0.5%, companies only)
10.00 KM
Total cost for the employer
2,130.00 KM

Each item is rounded to the fening, so other calculators may differ by a few fening.

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How it works

  1. 1

    Start from the gross salary: the amount in the employment contract before anything is deducted.

  2. 2

    Contributions from the salary: 31% of the gross, made up of pension and disability 17%, health 12.5% and unemployment 1.5%.

  3. 3

    Personal allowance: 300.00 KM a month is deducted before income tax, for the employee's main job.

  4. 4

    Income tax: 10% of what remains after contributions and the allowance.

  5. 5

    Net salary: the gross salary, minus contributions, minus income tax.

  6. 6

    The employer pays on top of the gross salary: contributions of 5% (since 1 July 2025, down from 10.5%), plus a water fee, a natural disaster protection fee and, for companies, a disabled persons' fund levy.

Worked examples

Examples for a company, with the personal allowance applied.
GrossContributionsIncome taxNetEmployer cost
1,000.00 KM310.00 KM39.00 KM651.00 KM1,065.00 KM
1,500.00 KM465.00 KM73.50 KM961.50 KM1,597.50 KM
2,000.00 KM620.00 KM108.00 KM1,272.00 KM2,130.00 KM
3,000.00 KM930.00 KM177.00 KM1,893.00 KM3,195.00 KM
5,000.00 KM1,550.00 KM315.00 KM3,135.00 KM5,325.00 KM
1,605.48 KMMinimum wage497.70 KM80.78 KM1,027.00 KM1,709.85 KM

Sources

  • Zakon o doprinosima FBiH, izmjene: Sl. novine FBiH br. 33/25
  • Zakon o porezu na dohodak FBiH
  • Odluka Vlade FBiH o minimalnoj plati za 2026. godinu
  • Porezna uprava FBiH

What this tool does not cover

  • Meal, transport and other allowances paid on top of the salary
  • Higher allowances for children or dependants
  • Length-of-service bonuses and collective agreement rules
  • Salaries in Republika Srpska or Brčko District, which follow different rules

For information only

This tool gives an estimate and is not tax advice. Rules and rates can change. For a binding calculation for your business, ask us.

We re-check the figures against the law and update this page when they change.

Common questions

How do I calculate net salary from gross in the Federation of BiH?

Deduct 31% contributions from the gross salary, subtract the 300 KM personal allowance from what remains, take 10% income tax on that taxable amount, and what is left is the net salary. For 1,500 KM gross this gives 961.50 KM net.

What does an employer pay on top of the gross salary?

Since 1 July 2025 the employer pays contributions of 5% on top of the gross salary, down from 10.5%, plus small levies: a 0.5% water fee, a 0.5% natural disaster protection fee and, for companies only, 0.5% for the disabled persons' fund. Craftsmen do not pay the last one.

What is the minimum salary in the Federation of BiH in 2026?

The minimum net salary for full-time work is 1,027 KM, which is about 1,605 KM gross. The government sets it each year, usually at the end of December for the following year, so check this page again in January.

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