Hire in Serbia

Serbia PEO &

Employer of Record

Hire & manage teams remotely in Serbia without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Serbian

Salary Currency

Serbian Dinar (RSD)

Payroll tax

16.67

Payroll Cycle

Monthly

Time zone

UTC +2

Capital city

Belgrade

Hire Employees in Serbia

NNRoad provides employer of record (EOR)professional employment organization (PEO) services to ensure that your business in Serbia complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Hiring with NNRoad

Pay as you go

No set-up or overhead costs to global expansion.

One P.O.C.

One point of contact for all your EOR employees.

Compliance

Ensured compliant contracts and operations.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Serbia

Employer of Record (EOR) services are for companies who do not have a legal entity in Serbia, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

01.

Candidate Selection

You interviews & select the candidates you want to hire in Serbia.

02.

Employee Onboarding

We sign a local labor contract with your employees based in Serbia.

03.

Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Serbia.

04.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Serbia.

Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

On-boarding and off-boarding employees following labor law practice.

Complete payroll solution and benefit administration

Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.

Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.

Payment management (Invoicing customers/clients and vendor payments).

Work VISA application assistance, if needed.

Local individual income tax reporting.

Payroll & PEO in Serbia

Professional Employment Organization (PEO) services are for companies who have a legal entity in Serbia, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

01.

Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Serbia.

02.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Serbia.

Registering the necessary company and personnel information for payroll calculation in the payroll software and system

Monthly Payroll Processing

Year-End Adjustment and Annual Declaration

PEO employees in Serbia

Taxes & Payroll in Serbia

Employee Income Taxes:

Individual income tax rates in Serbia are based on progressive tax brackets.

Non-residents are taxed on their Serbian-sourced income and worldwide income related to their work in/for the Republic of Serbia, whilst residents are taxed on their worldwide income.

Employee income is taxed at a fixed rate ranging from 10% to 20%, depending on annual income.

Tax Brackets

N/A

Sample Calculation

N/A

Employer Costs in Serbia

Employer Contribution

11.50% – Pension and Disability Insurance
5.15% – Health Insurance

Total employment cost: 16.65%

Employee Contribution

14% – Pension and Disability Insurance
5.15% – Health Insurance
0.75% – Unemployment Insurance

Total employee cost: 19.90%

Benefits & Insurance in Serbia

Pension Fund

The pension and disability insurance gives rights to receive payments in case of old age pension and disability. Pensions and financial compensations from pension and disability insurance are paid on a checking account, an institution’s account, a foreign currency account (if the user lives outside of the Republic of Serbia), and through an authorized person.

Healthcare Insurance

In the Republic of Serbia, there are two types of health insurance: mandatory and voluntary. ​

Employees and other people who are covered by mandatory health insurance have the right to health protection and monetary compensation in the events specified by the law.

Citizens who do not have mandatory health insurance are covered by voluntary health insurance. It also provides more comprehensive and basic insurance.

Unemployment Insurance

Compulsory unemployment insurance ensures the right to monetary benefits, health insurance, retirement and disability insurance, as well as other legal rights.

Serbia PEO employer of record

Working Hours in Serbia

Working Hours Per Week

The maximum full-time working hours are 40 hours per week (not including overtime).

Overtime

Any work performed outside of the above-mentioned full-time working hours is deemed overtime and must be compensated accordingly by the employer. For overtime labor, an employee is entitled to a pay increase in the amount specified by the employer’s work rules and the particular employment agreement, which cannot be less than an additional 26% of the employee’s base income (per hour).

Termination Laws in Serbia

Severance

Only the criteria and events set forth in the Labour Law allow an employer to terminate an employee’s employment. The following are examples of reasons for an employer to terminate employment:

  • An employment contract may be terminated by an employer for grounds related to the employee’s work abilities and conduct
  • If an employee violates a job duty due to his own fault, the employer has the right to terminate the employment contract
  • If an employee fails to follow work discipline standards, the employer has the right to terminate the employment contract
  • If there is a valid reason related to the employer’s demands, the job may also be terminated
    In the event of an employee’s unilateral termination of employment, the notice period must be at least 15 days and no more than 30 days.

    Notice Period

    The notice time for an employer’s unilateral termination of employment will vary depending on the reason for termination, but it cannot be less than eight days or more than 30 days.

  • Employment Contract in Serbia

    Employment Contract

    With each employee, a written employment agreement must be reached.

    Under the Labour Law, there are 13 mandatory elements that must be included in an employment agreement, including the:

  • Name and registered seat of the employer.
  • Name and place of residence of the employee.
  • Work post and job description.
  • Place of work.
  • Type of employment.
  • Basic salary on the date of conclusion of the employment agreement.

    Probation Period

    Probation period can last for 6 months at most.

  • Types of Leaves in Serbia

    Annual Leave

    After one year of service with a company, employees are entitled to 20 days of paid annual leave. If an employee has not worked for six months at a company, yearly leave is accrued at the rate of one-twelfth of a month.

    Sick Leave

    Employees are entitled to 30 days of paid sick leave, which is rewarded at 65% of their regular income. If an employee becomes ill as a result of a working injury or illness, the employer must pay 100% of the employee’s wage for the time off. If a sick leave period exceeds 30 days, the state, not the employer, pays the excess leave.

    Maternity Leave

    Employees may be eligible for a maternity leave package that includes childcare leave, resulting in a total of 365 days of leave that begins 28 to 45 days before the expected due date.

    An employee is paid the average of their income over the previous 12 months, up to a maximum of five times the national average wage, during this time.

    Paternity Leave

    After the child is born, the father or partner is entitled to five days of paternity leave. In extreme circumstances, the employee is entitled to the compensated entitlement.

    Parental Leave

    If the mother is unable to care for the baby during this time, the father can share the childcare leave that the mother is entitled to.

    Public Holidays in Serbia

    Public Holidays

  • New Year’s Day – January 1-2-3
  • Orthodox Christmas – January 7th
  • Sovereignty Day of Serbia – February 15-16
  • Good Friday Orthodox – April 22th
  • Orthodox Easter – April 23-24-25
  • Labour Day – May 1-2-3
  • Armistice Day – November 11th
  • Resources

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