Serbia
Employer of Record & PEO in Serbia
Hire & manage teams remotely in Serbia without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Native Language
Serbian
Employee Protection
High
Payroll Frequency
Monthly
Capital city
Belgrade
Termination
Hard
Internet
Medium
Currency
Serbian Dinar (RSD)
Immigration
Hard
English Speaking
>60%
Population
8.68 Million
Employment Cost
Low
Cost of Living
Medium
How NNRoad Employment & PEO Services Work?
NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Serbia. Registering a legal entity in Serbia as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Serbia in full accordance with local labor laws in under a week.
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 in Serbia. Employment and full liability are outsourced to NNRoad.
➊ You interviews & select the candidates you want to hire in Serbia.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes payroll in Serbia in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Serbia while NNRoad manages payroll & HR liabilities.
- Engaging employees through local labor contracts including contract administration, engagement, extension termination and conversion to permanent hire
- On-boarding and off-boarding employees following Serbian labor law practice
- Registration of employees with social security board and with tax office
- Complete payroll solution and mandatory benefit administration
- Employee management according to local laws, including employee record, time keeping, bonus and allowance management, expense and claims, and leave employee database management
- Correspondence with authorities regarding submission of employee documentation
- Payment management, including invoicing customers/clients and salary payments
- Submission of salary tax return
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.
➊ You interviews & select the candidates you want to hire in Serbia.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Serbia while NNRoad manages payroll & HR compliance.
- Registering and de-registering the necessary company and personnel information for payroll calculation in compliance with local rules
- Preparation of monthly forms to be submitted to the Tax Administration
- Calculation of gross salary, salary deductions, such as social insurances, unpaid leaves, etc., and net salary based on information provided by the Company including irregular payments such as incentive/bonus, allowance, paid/sick leaves, severance payments, IOSI, solidarity support of company etc. if applicable
- Annual Calculation per employee report (PPP form)
- Pro-rata calculation for people who join/resign
- Providing a monthly payroll summary to the Company
Advantages of NNRoad's Serbia Employment Services
- With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Serbia.
- Pay as you go
- Dedicated account manager – One point of contact for multiple locations
- Employment & termination processing
- Complete payroll solution and statutory benefit according to local laws
- With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Serbia.
- NNRoad only works with professional locally licensed partners
- GDPR compliant
- NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
- NNRoad provides foreigner VISA application services, if needed
Employment Compliance in Serbia
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.
Tax Brackets
Employee income is taxed at a fixed rate ranging from 10% to 20%, depending on annual income.
Employer Costs in Serbia
Employer Contributions:
11.50% – Pension and Disability Insurance
5.15% – Health Insurance
Total employment cost: 16.65%
Employee Contributions:
14% – Pension and Disability Insurance
5.15% – Health Insurance
0.75% – Unemployment Insurance
Total employee cost: 19.90%
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).
Benefits & Insurance in Serbia
Pension and Disability Insurance
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.
Health 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.
Termination Laws in Serbia
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.
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.
Severance pay
Only in the event of redundancy is a severance payout needed. For each complete year of service, payment cannot be less than 1/3 of the employee’s usual compensation.
Holidays in Serbia
Public Holidays in Serbia
- 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
Paid Leave in Serbia
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.
Employment Contract in Serbia
Employment Contract
With each employee, a written employment agreement must be reached.
- 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
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.
Immigration Laws in Serbia
To legally perform activities in this country, a work permit is necessary at the time of registration as an employee.
The Serbian government issues a variety of visas to foreign nationals. Types of visas include:
- Type A visa for airport transit
- Type B visa for transit
- Type C visa for a short stay
- Type D visa for temporary residence
Employees will need to obtain a temporary residence visa as well as a work permit in order to live and work in Serbia for an extended period of time.
