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Payroll and Benefits Guide Serbia

Last updated: Feb 04, 2024

Currency
Serbian Dinar (RSD)
Employer Taxes
Unknown
Payroll Frequency
Monthly
Employee Costs
19.90%
Capital
Belgrade
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Employer Payroll Contributions
10.00%
Pension and Disability Insurance* (minimum monthly contribution basis is RSD 40,143 ,and the maximum monthly contributions basis is  RSD 573,470 )
5.15%
Health Insurance
Minimum not set
Meal allowance & holiday allowance
15.15%+ Allowance
Total Employment Cost
Employee Employee Payroll Contributions
14.00%
Pension and Disability Insurance
5.15%
Health Insurance
0.75%
Unemployment Insurance
19.90%
Total Employee Cost
Employee Income Tax
10,00%
Net annual income between 2,470,644.00 RSD and 4,941,288.00 RSD
15.00% Annual income above 4,941,288.00

*Tax-free allowance is 25,000 RSD

**Amendments to the Law on Personal Income Tax (PIT Law) and the Law on Contributions for Compulsory Social Insurance (Law on Contributions) regarding relief to employers for taxes and contributions on employees’ salaries. From March 1, 2022, two new tax reliefs for employers will be applied:

  • For an employer who establishes an employment relationship with a newly employed person and
  • For an employer who, within the scope of his activity on the territory of the Republic of Serbia, performs research and development.

This salary tax relief is applicable towards salaries paid to a newly employed person in the period starting from March 1, 2022, and ending December 31, 2024.

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

Minimum wages have been revised in Serbia in effect from 01 January 2023 to 230.00 RSD net per hour, with an average monthly minimum of 40,020 RSD (based on 176 working hours).

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

In Serbia, the payroll frequency is typically on a monthly basis. The employer must make salary payments at least once a month.

13th Salary

There is no legal requirement for 13-month payments. Employers may issue bonuses at their discretion.

Working Hours

General

The working week in Serbia is typically 40 hours, eight hours per day, five days a week.

Overtime

All work above the standard working hours per week is to be paid as overtime and is regulated by the employment contract/collective agreements. When an employee is requested to work overtime or on holidays, there are maximums in relation to the number of hours allowed. These maximums are eight hours per week, four hours per day.
All overtime hours in excess of 40 hours per week are paid at an overtime compensation rate; this rate is typically 126.00% of the employee’s average salary rate. Overtime hours performed on a public holiday are compensated at 110.00% of an employee’s standard rate.

Leave

Annual Leave (vacation)

Employees are entitled to 20 days of annual paid leave following the completion of one year of service with an employer. If the employee has not yet worked for six months within an organization, the employee accrues annual leave at the rate of 1/12 per month. Unused days can be carried over until the end of June of the following year.

Public Holidays

Holidays that fall on a weekend are moved to the next working day. Employees are entitled to paid leave during public holidays based on their average salary in the preceding 12 months.

Date Day Holiday Notes
1 Jan 2024 Monday New Year
2 Jan 2024 Tuesday New Year’s Holiday
7 Jan 2024 Sunday Orthodox Christmas
15 Feb 2024 Thursday Serbia National Day
16 Feb 2024 Friday Serbia National Day
1 May 2024 Wednesday Labour Day
2 May 2024 Thursday Labour Day
3 May 2024 Friday Orthodox Easter Holiday
6 May 2024 Monday Orthodox Easter Holiday
11 Nov 2024 Monday Armistice Day

Sick Days

Employees are entitled to 30 days of paid sick leave compensated by the employer at 65% of the employee’s standard salary. If an employee has fallen ill due to a workplace injury or sickness, an employer must compensate for this leave at 100% of the employee’s wage. If the sick leave surpasses 30 days of sick leave, the state pays the additional leave, not the employer.

Employers must submit a medical certificate for the sickness within the first three days of sickness.

Maternity Leave

Mothers receive maternity leave that equates to a total of 365 days. Following the birth of a third child, the duration extends to a total of 24 months of leave. Leave may begin at a maximum of 45 days and no less than 28 days before the expected due date. During maternity, the employee receives compensation for their average salary over the past 1 months (capped at a maximum of five times the national average wage), paid for by the Government Republic Fund of Health Insurance from the first day of maternity leave. If the employee returns to work before the end of maternity leave, an employer must provide her with a 90 minutes’ paid lactation break during the workday.

If a mother experiences a miscarriage or a stillbirth, they are entitled to take off 3 months of paid leave.

Paternity Leave

The father or partner is entitled to 5 days of paternity leave after the child’s birth, paid at full salary by the Employer.

Parental Leave

Under certain circumstances, the partner can take over the Maternity Leave entitlement from the mother.

Adoptive parents are entitled to eight months of leave after the adoptive child is placed in their care until the child is five years old. Adoptive parents are entitled to leave when the adoptive child is less than three months old until the child is 11 months.

Other Leave

Bereavement Leave – in the event of the death of a father, mother, spouse, or child, an employee is entitled to 5 days’ leave.
Wedding Leave – workers are entitled to 5 days of leave in the event of their wedding.

Blood Donation Leave-  – workers are entitled to 2 days of leave when voluntarily donating blood.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

The termination process varies according to the employment agreement and collective agreement in place and is based on the type of contract and reason for termination.
Employers must provide an explanation of the reasoning for the dismissal and must do so in writing at least eight days before the termination initiation. An employee must be allowed to respond to an employer’s termination notice. Failure to provide this opportunity may result in a court invalidating the dismissal.

Notice Period

Employers must give an employee eight days notice before the dismissal (five days during probation). An employee terminating the employment contract must provide 15 days’ notice.
In the event of layoffs, a notice period of 30 days is required.

Severance Pay

In Serbia, severance pay is only paid in the case of layoffs. The severance payment is equal to at least 1/3 of the monthly average salary for the last 3 months multiplied by the years service at the company.

Probation Period

In Serbia, the probation periods may vary depending on the employment contract in place. However, the probation period can be no more than six months.
During the probation period, either the employer or employee can terminate the employment contract with five days’ notice.

VISA

VISA

There are several requirements for every type of Serbian visa, but the specifics vary from visa to visa. However, some of the general requirements include:

  • Valid passport and photos
  • Letter of invitation from a Serbian-based company
  • Application forms
  • Application fees
  • Proof of medical insurance
  • Proof of funds

Your prospective employee should liaise with the Serbian Ministry of Interior Affairs to supply any relevant documents and application forms to their local embassy/consulate to apply for a work visa. Serbia has a range of visas for foreigners and workers. However, foreign employees’ most frequently requested visas are the C visas, for stays of fewer than 90 days, and D visas, for more than 90 days.
The employer must complete work permit applications. First, the employer must correspond with the National Employment Service to demonstrate that no Serbians can fill the position in question. If no Serbians can be found, the employer can apply for a work permit. The most frequently requested work permit in Serbia is the Type D Work Permit, specifically for foreigners working in Serbia temporarily. It lasts for one year and can be renewed for an additional year. It usually takes three weeks to process.

VAT

General

The standard rate of VAT in Serbia is 20.00%

Stay up to date on payroll & employment law changes

Version History

February 1, 2024
The maximum and minimum monthly contribution basis has increased.
January 1, 2022
Minimum wages have been increased by 9.4%. From January 2022 until December 2022 the minimum wage will be set at RSD 201.22 net per hour.
October 12, 2021
Parental leave of 5 days.
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Questions & Answers

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Patricia
Patricia
9 months ago

Can you do studies on how much selected positions are paid ?

Enny Shmurin
Admin
Enny Shmurin
8 months ago
Reply to  Patricia

Hello, existing clients of Papaya can use our Benchmarking tool to request a salary benchmark.

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Payroll and Benefits Guide in Serbia

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Payroll and Benefits Guide
in Serbia

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Serbia
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PDF
ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year
2 Jan 2024 Tuesday New Year’s Holiday
7 Jan 2024 Sunday Orthodox Christmas
15 Feb 2024 Thursday Serbia National Day
16 Feb 2024 Friday Serbia National Day
1 May 2024 Wednesday Labour Day
2 May 2024 Thursday Labour Day
3 May 2024 Friday Orthodox Easter Holiday
6 May 2024 Monday Orthodox Easter Holiday
11 Nov 2024 Monday Armistice Day