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
The NNRoad Advantage ☺
Pay as you go
Global account manager
Compliance
Fast Onboarding
Foreigner Visas
Platform
Employer of Record in Serbia
01.
Candidate Selection
02.
Employee Onboarding
03.
Compliance & Payroll
04.
Payroll Reporting
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
01.
Compliance & Payroll
02.
Payroll Reporting
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
Taxes & Payroll in Serbia
Employee Income Taxes:
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
Sample Calculation
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.
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:
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:
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.