Employer of Record in Serbia

Businesses can only operate smoothly in Serbia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Serbia below, to avoid any compliance issues.

Employment Contract Requirements

Serbia's employment legislation is designed to safeguard the rights of the workforce. As part of the hiring process, employers must provide employees with a written employment contract outlining wages, hours worked, guaranteed time off and other employment terms.

Onboarding Process

We can help you get a new employee started in Serbia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Serbia

Serbia's labour law sets the standard workweek at 40 hours, spread across five days. Employers have the authority to establish daily schedules within specified limits.

Overtime in Serbia

Overtime pay is determined by the employment contract or collective agreements. There are limits for working beyond regular hours or on holidays - up to eight hours per week and four hours per day. Overtime beyond 40 hours per week is compensated at 125.00% of the average salary rate, while overtime on public holidays is compensated at 110.00% of the standard rate.

Probation Period in Serbia

Probation periods in Serbia depend on the employment contract, but they cannot exceed six months. Within this period, either the employer or employee can terminate the contract with five days' notice.

Fiscal Year in Serbia

1 January - 31 December is the 12-month accounting period that businesses in Serbia use for financial and tax reporting purposes.

Payroll Cycle in Serbia

The payroll cycle in Serbia is usually monthly, with employees being paid on or before the last working day of each month.

Minimum Wage in Serbia

The minimum wage for employees in Serbia is typically 230 RSD per hour, amounting to ~40,020 RSD per month for a typical 40 hour work week.

Bonus Payments in Serbia

Serbia doesn't mandate 13-month payments. Employers can give bonuses as they see fit.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 15.15% on top of the employee salary in Serbia.

Employee Payroll Tax Contributions

In Serbia , the typical estimation for employee payroll contributions cost is around 19.9%.

Individual Income Tax Contributions

Personal income is taxed at 10%, with no influence from factors like marital status or dependents. There's a tax relief of 21,712 RSD applicable to all employees and salaries.

Pension in Serbia

To be eligible for an old-age pension in Serbia, individuals must meet age and insurance requirements defined by the law. Men aged 65 and above with at least 15 years of pensionable service or those with 45 years of pensionable service regardless of age qualify. For women, eligibility starts at 63 years and two months with a minimum of 15 years of pensionable service or with 45 years of pensionable service, regardless of age. In Serbia, contributions for old-age and disability pensions are combined, with employers contributing 11% to both retirement and disability insurance.

In Serbia, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, paying fees, and meeting specific eligibility criteria. Key visa types include the Temporary Residence Visa, Work Permit for Employment, Self-Employment Permit, and Intra-Company Transfer Permit. Employers must ensure compliance with local labor regulations when sponsoring foreign employees, navigating the necessary documentation and handling processing times to secure the correct visa and permit for each employee's role.

Mandatory Leave Entitlement in Serbia

The annual leave entitlement in Serbia is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Serbia

Employees get paid for public holidays, and if a holiday falls on a weekend, it shifts to the next workday.

Paid Time Off in Serbia

Serbian employees have a minimum of 20 working days of annual leave, which can be extended based on factors like work contributions, conditions, experience, education, and contract or act criteria. Leave accrues as follows:

• In the first year, employees earn 1/12 of their annual leave for each month worked, applicable only in the initial year.
• After a full year of work, employees are entitled to at least 20 days of paid leave, usually granted at the beginning of the calendar year.

Maternity Leave In Serbia

Employees receive paid maternity leave starting 28 days before delivery, lasting a year with full wages for the first two pregnancies. For the third pregnancy onwards, the leave extends to two years, with full wages during the entire period.

Paternity Leave In Serbia

Employees receive paid paternity leave for five business days upon the birth of their child, with funding provided by the employer.

Sick Leave In Serbia

In Serbia, employees receive 30 days of paid sick leave from their employer. Beyond 30 days, the Health Insurance Fund provides sickness benefits, typically at 65% of the calculation base, but at 100% for work-related injuries, occupational diseases, or organ donations.

Parental Leave In Serbia

In specific situations, the partner can assume Maternity Leave from the mother. Adoptive parents get eight months of paid leave when the adoptive child is placed until the child is five. For children under three months, leave extends until the child is 11 months.

Bereavement Leave

Employees get five days of paid leave for the death of a close family member.

Wedding Leave

Workers get 5 days of leave for their wedding

Termination Process in Serbia

Termination processes in Serbia are determined by employment and collective agreements. Employers must provide a written explanation for dismissal at least eight days before taking action. Employees have the right to respond to the notice, and not granting this opportunity may result in the court invalidating the dismissal. Valid reasons for dismissal in Serbia include:

• Fraud
• Negligence
• Dishonesty
• Other work-related offenses

Notice Period in Serbia

Employers need to give eight days' notice before dismissal (five days during probation). If an employee terminates the contract, a 15-day notice is required. In cases of layoffs, a 30-day notice period is necessary.

Severance in Serbia

Severance payments are mandatory only for employees laid off due to redundancy. The calculation involves multiplying one-third of the annual salary by the number of years worked with the employer.