Employment Law

Serbian Employment Contract

All employers are required to provide their employees with a Serbian employment contract as this is a legal requirement. Any contract must clearly spell out all relevant employment details such as benefits, working hours, compensation, etc. Salaries and wages need to be shown in the local currency Serbian dinar and the contract should be written in Serbian language.

Fixed Term

Indefinite

Working Hours in Serbia

Normal working hours in Serbia are 40 hours per week. Exceeding this time is generally considered overtime and cannot exceed four hours per day. Workers are also entitled to at least one day off per week.

Holiday Policy

Serbia Vacation

Employees in Serbia are entitled to at least four weeks (20 days) of paid leave per year, and two consecutive weeks must be taken.

Serbian Sick Leave

Employees in Serbia can enjoy up to 30 days of paid sick leave. The compensation for leave for non-work-related illness is 65% of the normal salary, and the compensation for leave for work-related illness is 100% of the normal salary.

Parental Leave in Serbia

A Serbian female foreman is entitled to one year of maternity leave for her first two children and two years for her third and fourth children. During the leave period, employees may not be dismissed and may receive their full average salary (up to a maximum limit) for the previous year's employment.

Male employees are entitled to seven days of paternity leave.

Dismissal and Severance in Serbia

Employees in Serbia are generally entitled to receive between 8 and 30 days' notice before termination, but the exact length depends on how long the employee has worked for the company and the terms stipulated in the employment contract.

In some cases, employees may also be entitled to severance pay, which is tied to the employee's salary and years of service.

Serbian Taxes

Employees and employers in Serbia are required to contribute a certain percentage of their wages to various social funds. For health insurance, they each have to pay 6.15%. For unemployment insurance, they must each contribute 0.75%. For pensions, employers and employees must contribute 17.9% and 19.9% ​​respectively.

Income tax rates in Serbia are progressive, with the higher an employee’s income, the higher the proportion of their income they pay. Tax rates range from 10% to 20%

Serbia’s corporate tax rate is 15% for most companies.

Health Insurance in Serbia

Public health care is funded by mandatory health insurance payments from employers and employees. Therefore, employers are not required to provide private health insurance, although some may choose to do so.

Salary and Benefits

Serbian Compensation Law

As of January 2021, the minimum wage in Serbia is 32,126 dinars per month.

Welfare Management in Serbia

As a foreign employer, setting up a Serbian benefits system can be a lengthy process, with many different laws and employee protections in place.

An effective solution is to outsource Serbian benefits administration to Remoly. We'll help you get set up and compliant as quickly as possible so you can focus on rapid, successful expansion.