Country Guides
Serbia
Employment in Serbia at a glance
Capital
Belgrade
Language
Serbian
Remote workers
Approx. 20,000
Currency
Serbian dinar (RSD)
Working hours
40 hours
Public holidays
7 national and multiple religious holidays per year
Minimum hourly salary
RSD 371,00
Tax year
Jan 1 - Dec 31
Date format
DD/MM/YYYY
Misclassification penalties
Misclassifying employees as freelancers or contractors, while common, is a very risky thing for companies to do. Serbian labour inspections check working conditions, which include: working hours, reporting lines, and continuity of work to establish whether someone should be treated as an employee. Confirmation of misclassification cases can lead to fines, reputational damage and restrictions on future hirings.
Fun fact
Serbia is one of the world’s largest exporters of raspberries and is often called the “raspberry capital of the world.’’
Taxes in Serbia
EMPLOYER CONTRIBUTIONS
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Employer tax: 15.15%
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Social security contributions: Pension and disability insurance (10%) and health insurance (5.15%)
EMPLOYER SOCIAL SECURITY CONTRIBUTIONS
Social security contributions: Pension and disability insurance
Contribution amount: 10%
Social security contributions: Health insurance
Contribution amount: 5.15%
EMPLOYEE CONTRIBUTIONS
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Income tax: 10%- 20%
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Social security contributions: 19.9%
EMPLOYEE SOCIAL SECURITY CONTRIBUTIONS
Social security contributions: Pension and disability insurance
Contribution amount: 14%
Social security contributions: Health insurance
Contribution amount: 5.15%
Social security contributions: Unemployment insurance
Contribution amount: 0.75%
Income tax
Employment income in Serbia is taxed at a flat rate of 10%. Before the tax is applied, a monthly non-taxable allowance of RSD 34,221 is deducted from the employee’s gross salary. The employer withholds and pays this tax through payroll.
Employer of Record in Serbia
What is an EOR?
An Employer of Record is the legal employer of a worker in Serbia. As such, the Employer of Record takes care of all Serbian compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.
EOR responsibilities
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Ensuring their employment is compliant with local employment laws
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Processing local payroll
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Filing employment related taxes and returns
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Issuing payslips to the employee
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Distributing salary payments
How it works
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Company
Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.
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Boundless
Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.
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Employee
The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.
Benefits in Serbia
Statutory benefits in Serbia
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Public health insurance
Health insurance is mandatory in Serbia for most residents, overseen by the Republic Health Insurance Fund (RFZO).
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Social security
Socijalno Osiguranje covers healthcare, pension, family support, unemployment and other social benefits.
Common non-mandatory benefits in Serbia
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Private health insurance
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Transportation allowance
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Meal vouchers or subsidies
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Bonuses and incentives
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Company car allowance
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Mobile phone and laptop
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Fitness and wellness programs
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Extra paid leave
Rights & protections in Serbia
Written employment contract
Health & safety at work
Union membership
Protection from discrimination
Remote work
Social security, retirement and insurance
Severance pay
Protection from harassment
Protection of privacy and personal data
Leave in Serbia
Paid time off
20 days with an option of an additional 5 days
Sick leave
30 days covered by the employer, ranything after that is covered by the state health fund (RFZO)
Maternity leave
12 months paid. 28 of those days must be taken before the child's birth
Parental leave
5 working days
Employment conditions in Serbia
Probation
The probation period in Serbia can’t exceed 6 months from the start date of employment.
Business transfer
According to Article 147 of the Serbian Labour Law, in the event of a business transfer, all employees are automatically transferred to the new employer. There is no need to sign new contracts, and the new employee must apply internal regulations from the previous employer for at least one year.
Payments in Serbia
Salaries are generally paid monthly, and salaries are paid at least once a month. Wages for the previous month are required to be paid no later than the end of the current month.
End of employment in Serbia
An employment agreement in Serbia may be terminated for several reasons, including mutual agreement between the employer and the employee, termination by either party, expiry of a fixed-term contract, the death of the employee, or other cases prescribed by law. In cases where an employment contract is terminated due to poor performance or redundancy, the employer must follow the prescribed legal procedures to avoid disputes and potential penalties.
FAQs
Companies hiring in Serbia generally consider four approaches. You can run payroll from your HQ for short-term arrangements, engage contractors for project-based work, set up a local entity to hire directly, or partner with an Employer of Record. Each route involves different compliance and operational effort. An EOR allows compliant Serbian employment without setting up a local entity.
Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Serbia, employment is the right structure under Serbian law, covering entitlements like paid annual leave, sick leave, and social security contributions. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Serbia.
HR compliance in Serbia means your policies and procedures respect all applicable Serbian employment laws and regulations. When you hire in Serbia, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave, annual leave (20 days, with optional extras), tax credits, working hours, and minimum wage rules. Following these is fundamental for running the business well.
An Employer of Record is the legal employer of the individual in Serbia for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 12 months of paid maternity leave and 20 days of annual leave. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.
Boundless partners with employment lawyers and advisers in each country we operate in, including Serbia. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.
In Serbia, both employers and employees have to pay social security contributions. Employers contribute 15.15%, while employees contribute 19.9%. Additionally, employees pay income tax ranging from 10% to 20%, depending on salary. Use our salary breakdown calculator for a clear overview of employer costs
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