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Overview
Serbian Dinar (RSD)
CURRENCY
Belgrade
CAPITAL
monthly
PAYROLL FRECUENCY
10
PUBLIC HOLIDAYS
0 to 16.15
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Serbia
Employer
Company Payroll Contributions
0% - 11%
Pension/Disability Insurance (max. earnings 4.5,750 RSD)
0% - 5.15%
Health Insurance
0% - 16.15%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 14%
Pension/Disability Insurance
0%- 5.15%
Health Insurance
0%- 0.75%
Unemployment Insurance
0% - 19.9%
Total Employee Cost
Employee Income Tax in Serbia
* Changes to the Personal Income Tax Law (PIT Law) and the Law on Compulsory Social Insurance Contributions to provide relief to companies in relation to tax and contributions on staff wages. Beginning on March 1, 2022, 2 additional tax breaks for employers will be in effect; one for those who start a working relationship with a new hire, and the other for those that do research and development as part of their regular business operations in Serbian soil. The salaries paid to newly hired individuals throughout the time frame beginning March 1, 2022, and concluding December 31, 2024, are subject to this salary tax remission.
10%
Total Yearly Income between 2,470,644.00 and 4,941,288.00 RSD
15%
Annual Income Over 4,941,288 RSD
Minimum Wage in Serbia
General
The minimum salary is 201.22 RSD net an hour, or a total of 47,767.08 RSD on a monthly basis. Based on 176 hours of work. A Global Employment Outsourcing that provides payroll outsourcing services can help businesses suffice payments to Serbian employees.
$429,66 Minimum Wage per month
Payroll Contributions in Serbia
Payroll Cycle
The payroll in Serbia normally occurs once every month. The employer is bound to pay salaries at least once every month. With International PEO services or an Employer of Record in Serbia, businesses can abide by the payroll cycle.
13th Salary
13-month payments are not required by law. Employers have the discretion to award incentives, companies must have this in mind when they hire and onboard workers in Serbia.
Employee Benefit in Serbia
Visa and work permit in Serbia
When applying for a work visa, your prospective employee should coordinate with the Serbian Ministry of Internal Affairs to provide all necessary paperwork and application papers. Foreigners and workers can apply for a variety of visas in Serbia. The C visa, for stays of up to 90 days, and the D visa, for stays of more than 90 days, are the visas that foreign employees request the most commonly.
The employer must submit applications for work permits. In order to prove that no Serbs are qualified to fill the role in question, the employer must first communicate with the Federal Employment Service. If no Serbians are available, the employer may submit a work permit application. The Type D Work Permit, which is intended exclusively for foreigners temporarily residing in Serbia, is the one that is most frequently requested in Serbia. It has a one-year duration and a one-year extension option. Processing typically takes three weeks.
VAT in Serbia
The regular VAT in the region is 20%. Companies hire an Employer of Record in Serbia to abide by tax laws and VAT.
Working Hours in Serbia
General
The typical working week in Serbia is 40 hours, 8 hours each day, five days a week. An international PEO that provides solutions for employee onboarding in Serbia must honor this law.
Overtime
The employment contract and collective agreements govern all labor performed in excess of the required number of hours per week.
There are limits on the amount of hours an employee may work when urged to work overtime or on a holiday. Eight hours a week and four hours a day are the upper limits.
All hours worked in excess of 40 in a workweek are compensated at an overtime rate, which is normally 126.00% of the employee's average hourly wage.
On a holiday, overtime work is paid at a rate that is 110.00% of the employee's hourly rate. Companies use an Employer of Record in Serbia to make sure they abide by these guidelines.
Working Week
From Monday to Friday.
Employee Termination in Serbia
Termination Process
Depending on the type of agreement and the grounds for termination, the termination procedure differs depending on the contract of employment and union contract in effect.
Employers need to give a written justification for the termination at least 8 days prior to the start of the termination process. If an employee is not given the opportunity to react to an employer's notice of termination, a court may invalidate the dismissal.
Notice Period
An employee must receive eight days' notice before being let go by their employer. Employees who wish to end their job relationship must give 15 days' notice.
There must be a 30-day notice period in the event of layoffs. An Employer of Record in Serbia can help provide the necessary notice.
Severance Pay
Severance pay is only given in layoff situations in Serbia. For every year of service, the layoff payment is at least equal to one-third of the employee's annual base pay.
Probation Period
The probationary periods in Serbia can change according to the employment agreement that is in existence. The probationary term, however, cannot last longer than six months.
The employment agreement is terminable with five days' notice by either the employee or the employer during the probationary period.
Employee Leaves in Serbia
Paid Time Offs
After serving an employer for a full year, workers are eligible to 20 days of paid annual leave. Employees who have not been with a company for six months but collect yearly leave at a pace of one-twelfth of a month. Contractor manager services are ideal to ensure that workers receive their time off with pay.
Public Holidays
There are 10 national holidays throughout the year.
Vacation Holidays
There are 25 vacation holidays throughout the year.
Sick Days
Workers are eligible for 30 days of sick leave pay, which they must pay for themselves at a rate of 65.00% of their base pay. An employer needs to pay this time at 100.00% of the employee's wage if an employee became unwell as a result of an illness or injury sustained on the job.
When sick leave exceeds 30 days, the state, not the employer, pays for the additional time off. Within the first 3 days after being ill, employers are required to produce a health certificate for the illness.
Paternity Leave
After the child is born, the father or partner is eligible for 5 days of paternity leave. Only in extraordinary circumstances is the employee eligible for the pay entitlement.
Paternal Leave
If the mother is not able to take care of the baby during this time, the father can share the parental leave that the mom is eligible for.
Adoptive parents are eligible for 8 months of leave after placing their adoptive kid in their custody until the youngster reaches the age of five. Adoptive parents have the right to leave when their child is less than 3 months old until the kid is eleven months old.
Other Leave
Employees in Serbia are eligible for bereavement leave in the case of the passing of an immediate family member. An employee has the right to five days of leave for the loss of a parent, spouse, or kid.
Additionally, an employee has the right to five days of leave for a wedding and 2 days of vacation for voluntarily giving blood.
Maternity Leave in Serbia
An employee's maternity entitlement, which can be combined with child care leave to make 365 days of leave total, can start between 28 and 45 days before the expected due date.
An employee gets paid during this time the average of their income for the previous 12 months; up to a total of five times the average wage in the country.
There are 365 leave throughout the year.