How to hire and pay employees in Serbia
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Before hiring
Before hiring employees in Serbia, there are a few important things you’ll need to know. Firstly, in Serbia, non-compete agreements must be limited in scope. They can last for a maximum of two years after termination of the employment relationship.
It’s also important for employers to know that there is no specified paternity leave in Serbia, but under certain circumstances, the father could use maternity leave if the mother is unable to care for the baby during that period.
We know this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform.
Get an overview of what you need to know when hiring in Serbia below.
At a glance
CURRENCY
RSD
OFFICIAL LANGUAGE
SERBIAN
PAYROLL FREQUENCY
MONTHLY
EMPLOYER TAXES
16.65%
13th / 14th SALARY
N/A
Good to know
- Employees are entitled to severance pay in the event of termination of employment due to redundancy. The amount of this payment cannot be lower than the sum of one third of the employee's salary for each completed year of employment.
- Employees acquire certain rights on the basis of their period of employment. They are entitled to a 0.4% increase in their basic salary for each year of employment with the same employer.
- Employees are entitled to a meal allowance of at least RSD 4,992.87 per month (figures may vary for higher salaries).
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Labor laws in
Serbia
Working hours and overtime
Employees in Serbia work eight hours per day, 40 hours per week.
Any overtime work over eight hours per day or 40 hours a week is paid at 126% of regular pay. Overtime work is limited to eight hours per week and four hours per day.
Minimum wage
Employment contracts
In Serbia, the probationary period is no longer than six months.
IP protection and non-compete agreements
In Serbia, non-compete agreements must be limited in scope. They can last for a maximum of two years after termination of the employment relationship, and the employer must pay the former employee monetary compensation in the amount agreed in their employment agreement.
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Benefits and leave in
Serbia
Vacation time
Employees in Serbia are entitled to 20 days of vacation each year, fully paid by the employer.
Employees are also entitled to an annual vacation allowance. The amount is determined by the employer in the individual collective agreement, work rules, or employment agreement.
Sick leave
During the first 30 days of sick leave, the employee receives the following compensation:
- 65% of their average salary in the preceding 12 months, in the case of non-work related sickness or injury.
- 100% of their average salary in the preceding 12 months, in the case of work-related sickness or injury.
There is no limit on the total duration of sick leave or number of sick leaves. After 30 days, sick leave payment comes from the state.
Maternity and paternity leave
Parental leave
Employees are entitled to up to 365 days of maternity leave and childcare leave combined. This is fully paid by the state. In Serbia, maternity leave can start 28-45 days before the childbirth and lasts for three months after the birth.
There is no specific paternity leave in Serbia, but under certain circumstances, the father could use maternity leave if the mother is unable to care for the baby during that period.
Holidays
View a list of recognized public holidays in Serbia here.
Employer tax
An employer’s social contributions in Serbia total 16.65%. This includes pension and disability insurance (11.5%) and health insurance (5.15%). Employers also pay a transportation allowance of RSD 3,275.
Individual tax
In Serbia, income tax is between 0% and 15% depending on an employee’s salary bracket. Employees also pay 19.9% social security tax, which includes pension and disability insurance, health insurance, and unemployment insurance.
Termination in
Serbia
In Serbia, an employee can be dismissed based on one of the following grounds:
- Failure to achieve work results (i.e. incompetence)
- Work-related criminal act
- Failure to return to work within 15 days after the expiry of unpaid leave or stay of employment
- Intentional breach of a work duty
- Breach of the workplace discipline
- Redundancy
- Refusal of the employee to add an annex to the employment agreement for certain specific reasons
In the event of termination of employment due to redundancy, a severance payment is required. The amount is determined by a general act or employment contract, provided that it cannot be lower than the sum of one third of the employee's salary for each completed year of employment.
Upon retirement, employees are entitled to a severance payment equivalent to two average salaries.
The minimum notice for terminations is 15 days, and it cannot be longer than 30 days.
Start hiring employees in
Serbia
Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast.
We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities.
With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While Oyster strives to provide current and accurate information, Oyster makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
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