If an employer wants to pay a 1,000 KM net salary to an employee, the employer first needs to pay 600 KM in taxes and social contributions.
This high amount of salary contributions is a significant factor in deterring employment and encouraging the grey economy in BiH.
Read about the tax burden and employment in a Dnevni Avaz reportage: http://www.avaz.ba/clanak/137163/smanjiti-ogromne-namete-poslodavcima-radi-povecanja-zaposlenosti-i-placa
