Choose your role below
Employer
Job Seeker
Hiring in Serbia? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Serbia.
Employment Norms in Serbia
Serbia is a country with a developing economy, and employment norms play a vital role in shaping its labor market. Understanding these norms is crucial for both employers and employees to navigate the legal requirements and make informed decisions. From working hours to leave entitlements, this article provides an overview of the essential employment norms in Serbia.
General Information:
- The Serbia currency is the Serbian dinar (RSD).
- Belgrade is the capital of Serbia.
- Serbian is the official language of Serbia. Documentation can be in Serbian to be considered legally valid.
- As of 2021, the GDP of Serbia was reported to be USD 7.5 billion.
Serbian labor laws cover employment contracts, minimum wage, working hours, and mandatory benefits such as paid leave and social security.
Table of Contents
- Agreements
- Onboarding Process
- Visa
- Minimum Wage
- Payroll Cycle
- Annual Bonus
- Health Benefits
- Working Hours and Overtime
- Leaves
- Social Security
- Taxes for Employers
- Taxes for Employees
- Probation
- Termination
- Severance Pay
- Employees or Contractors
- Final Words
AgreementsOnboarding ProcessVisaMinimum WagePayroll CycleAnnual BonusHealth BenefitsWorking Hours and OvertimeLeavesSocial SecurityTaxes for EmployersTaxes for EmployeesProbationTerminationSeverance PayEmployees or ContractorsFinal Words
Agreements
Serbia has signed several international agreements related to labor rights and regulations. Some of the notable agreements include:
- International Labor Organization (ILO) conventions
- United Nations (UN) conventions on human rights
- European Social Charter
- European Convention on Human Rights
- Stabilization and Association Agreement with the European Union
The language of agreements is typically English, although some may be available in Serbian as well. Employers operating in Serbia are required to comply with the provisions of these agreements, which cover various aspects of labor and employment, including:
- Equal opportunities and treatment in the workplace
- Prohibition of child labor and forced labor
- Protection of wages and working conditions
- Health and safety at work
- Social security and social protection
Onboarding Process
There are no specific laws governing the onboarding process. However, general best practices in Serbia include:
- Providing a job offer letter and employment contract
- Collecting and verifying necessary personal information and documentation, such as ID card, work permit, tax identification number, and bank account details
- Orienting new employees to company policies and procedures, job duties, and performance expectations
- Providing necessary training and resources to perform the job effectively.
Visa
Serbia offers several types of visas for foreign workers, including:
- Short-term visa for stays up to 90 days
- Long-term visa for stays longer than 90 days
- Temporary residence permit for stays up to one year
- Permanent residence permit for stays longer than one year
Tarmack helps you easily hire international talent as your full time employees without opening international subsidiaries. Find out more about our Employer of Record services
Learn More
Minimum Wage
As of January 2023, the minimum monthly wage in Serbia is RSD 49,399.
Payroll Cycle
In Serbia, the most common payroll cycle is monthly, with salaries paid at the end of each month.
Annual Bonus
In Serbia, employers don't need to provide an annual bonus to employees. However, some companies may choose to offer bonuses as a form of incentive or reward for good performance.
Health Benefits
In Serbia, employers are not required by law to provide health benefits to employees. However, many companies choose to offer health insurance and other benefits to attract and retain talent. Some common health benefits offered by employers in Serbia include:
- Health insurance coverage for medical, dental, and vision care
- Paid sick leave and paid time off for medical appointments
- Disability insurance and workers' compensation
- Access to mental health resources, such as counseling or therapy
Working Hours and Overtime
- Work hours: The standard work week is 40 hours, with a maximum of 8 hours per day.
- Break: Employers are required by law to provide employees with a minimum 30-minute break for every 6 hours of work.
- Overtime: All overtime hours over 40 hours a week are paid at an overtime compensation rate; this rate is typically 126.00% of the employee’s average salary rate.
Leaves
Sick Leave
- For the first 30 days of sick leave, employees are given 65% of their salary if the illness is not caused by the job.
- If the illness is caused by the job, they may be entitled to full wages for the first month of illness.
- The employers pay the sick leave for the first 30 days.
- If an employee is ill for more than a month then pay benefits can be drawn from the social security fund.
Parental leaves
- Mothers are entitled to up to 365 days of paid maternity leave with wages fully paid by the employer and social security for the first two births. the Maternity leave can be up to 2 years from 3rd birth onwards.
- Fathers are entitled to up to 7 days of paid paternity leave.
- Adoptive and foster parents get 8 months of leave. The leave period starts when the foster or adoption process is finalized. The leave period ends when the child turns 11 months old.
Annual leaves
- Employees get at least 20 days of paid annual leave per year, with additional leave for certain categories of workers, such as those with hazardous or strenuous jobs.
Other leaves
- Bereavement paid leave of 5 days is offered if a close member of the family passes away.
Public Holidays (for the Calendar year 2023)
- New Year's Day (January 1-January 3)
- Orthodox Christmas (January 7)
- National day (February 15)
- Orthodox Good Friday (April 14)
- Orthodox Easter Monday (April 17)
- May Day (May 1- May 2)
- Armistice Day (November 11)
If you structure your global talent acquisition strategy well, you will definitely enhance your talent quality and availability through a distributed workforce. Tarmack offers end to end recruiting services to help you achieve this.
Schedule Consultation
Taxes for Employers
Employers are responsible for paying taxes and contributions on behalf of their employees in Serbia.
- Social Security Contributions: Employers are required to contribute to various social security funds, including the Pension and Disability Insurance Fund, the Health Insurance Fund, and the Unemployment insurance.
- Pension and disability contribution - 11.5%
- Health insurance contribution - 5.15%contribution
- Unemployment insurance - 0.75%
- VAT( Value added tax) - a standard rate of 20%
Did you know that as a part of the Employer of Record service, Tarmack offers global payroll across 100+ countries? Not just that, we even offer this global payroll service on a standalone basis. So if you're looking for a payroll provider for one or more countries, you're at the right place.
Learn More
Taxes for Employees
In Serbia, employees are subject to several taxes and contributions, which include:
- Personal Income Tax: All employees are required to pay personal income tax on their earnings. The tax rate is progressive, ranging from 10% to 20%, depending on the employee's salary level.
- income between 2,470,644.00 RSD and 4,941,288.00 RSD - 10%
- income above 4,941,288.00 - 20%
- Social Security Contributions: Employees are also required to contribute to various social security funds, including the Pension and Disability Insurance Fund, the Health Insurance Fund, and the National Employment Service.
- Pension and disability contribution - 14%
- Health insurance contribution - 5.15%contribution
- Unemployment insurance - 0.75%
Probation
The probation period for an employee can last up to 3 months in Serbia.
Ready to convert your contractor to a full time employee?
Every now and then, that contractor you hired does such a good job that you want to hire them as a full time employee. Convert such contractors into your full time employees by using Tarmack's Employer of Record service. Doesn't matter where the contractor is. Our service covers 150+ countries around the globe!
Talk To Us
Termination
In Serbia, an employment contract can be terminated by the employer or the employee, with or without notice, under several conditions and scenarios.
- Termination by mutual agreement
- Due to the expiration of a fixed-term contract
- Due to the employee's resignation
- Due to the employee's misconduct or poor performance
- Due to the employer's operational or business needs
- Due to the employee's retirement or death
Severance Pay
In Serbia, employees are entitled to receive severance pay in cases where their employment is terminated due to redundancy, bankruptcy, or other reasons beyond their control. The minimum amount of severance pay is one-third of the employee's average monthly salary for each year of service.
Employees or Contractors
- Employers who misclassify employees as contractors may be subject to fines, back payments of taxes and social security contributions, and legal action by workers seeking to be reclassified as employees.
- Conversely, misclassifying contractors as employees can result in claims for benefits and protections to which they are not entitled, as well as the payment of additional taxes and contributions by the employer. Therefore, it is important for employers to properly classify their workers and ensure they are meeting all legal requirements for employment or contracting.
Final Words
Overall, Serbia has a well-defined set of employment norms and regulations that provide a framework for employers and employees to work within. The country offers a range of benefits such as paid leave, sick leave, and social security contributions. Employers who comply with the country's employment laws can benefit from a skilled workforce and a competitive business environment.
Explore Hiring & Payroll In Other Countries
Hiring & Payroll in United StatesHiring & Payroll in SingaporeHiring & Payroll in IsraelHiring & Payroll in PortugalHiring & Payroll in LatviaHiring & Payroll in CanadaHiring & Payroll in FinlandHiring & Payroll in United Arab EmiratesHiring & Payroll in MaltaHiring & Payroll in ChileHiring & Payroll in AustraliaHiring & Payroll in New ZealandHiring & Payroll in QatarHiring & Payroll in GreeceHiring & Payroll in MalaysiaHiring & Payroll in GermanyHiring & Payroll in IrelandHiring & Payroll in Saudi ArabiaHiring & Payroll in EstoniaHiring & Payroll in South AfricaHiring & Payroll in United KingdomHiring & Payroll in LuxembourgHiring & Payroll in Hong KongHiring & Payroll in Czech RepublicHiring & Payroll in BrazilHiring & Payroll in SwitzerlandHiring & Payroll in FranceHiring & Payroll in TaiwanHiring & Payroll in PolandHiring & Payroll in MexicoHiring & Payroll in SwedenHiring & Payroll in BelgiumHiring & Payroll in PhilippinesHiring & Payroll in ArgentinaHiring & Payroll in NorwayHiring & Payroll in AustriaHiring & Payroll in CyprusHiring & Payroll in HungaryHiring & Payroll in ThailandHiring & Payroll in DenmarkHiring & Payroll in JapanHiring & Payroll in SpainHiring & Payroll in SlovakiaHiring & Payroll in ChinaHiring & Payroll in NetherlandsHiring & Payroll in South KoreaHiring & Payroll in ItalyHiring & Payroll in Lithuania
+ 38 moreA truly global HR platform with everything you need to build, grow & manage a global team.
- Identifying & recruiting the best talent
- Payroll with full compliance across 100+ countries
- Employment agreements as per local laws
- Contractor invoices & time management
- Smooth remote onboarding of employees
- Immigration & mobility services around the world
Hold up! Please tell us how to contact you and we'll get in touch with you, most likely within an hour.
Copyright © 2024 Tarmack Inc. All rights reserved.
Social Security