Taxes in Serbia

Employers in Serbia pay social security contributions at a combined rate of 15.15% on top of gross salary.

There is no employer unemployment contribution. It was abolished from 1 January 2019, and the current Law on Mandatory Social Insurance Contributions does not provide for an employer-side unemployment rate.

Contributions are calculated on gross salary between a floor and a ceiling, both reset every year:

• Minimum monthly base (2026): RSD 51,297. Even if the salary is lower, contributions are calculated on this amount.
• Maximum monthly base (2026): RSD 732,820 (five times the average monthly salary). No contributions are due on the part of salary above the ceiling.

Employees have a combined 19.9% deducted from gross salary, withheld by the employer through payroll:

Employment income is taxed at a flat 10%.

The taxable base is calculated as:

Gross salary – employee social security contributions – monthly non-taxable amount

For 2026, the monthly non-taxable amount is RSD 34,221, applied pro-rata for part-time work. This amount was set by the December 2025 amendment to the Personal Income Tax Law and applies from 1 January 2026.

The employer calculates, withholds, and pays the tax each pay period, so employees do not file separately for salary income.

Beyond the monthly non-taxable salary amount, Serbian law also sets non-taxable limits for certain employer reimbursements and benefits.

These limits are adjusted annually on 1 February. The amounts below apply from 1 February 2026 to 31 January 2027:

Amounts above the applicable non-taxable cap are taxed as salary.

Two common payments have no tax-free cap:

• Meal allowance
• Annual leave bonus

Both are taxed in full as ordinary salary, as covered in the payments section.

• Newly employed persons refund: Employers hiring people registered unemployed for at least six months can reclaim salary tax on salaries paid through 31 December 2026: 65% for 1-9 qualifying hires, 70% for 10-99, and 75% for 100+.
• Innovative start-up founders: Founder salaries up to RSD 150,000 per month can be salary-tax free for 36 months from incorporation if the founder owns at least 5% of shares and is employed by the company.
• R&D relief: 70% of salary tax is waived in proportion to time spent on R&D work in Serbia.
• Newly settled taxpayers (novonastanjeni obveznici): A 70% salary tax base reduction for five years applies to qualifying people moving to Serbia into indefinite-term roles requiring expertise not easily found domestically. This covers Serbian nationals who spent the previous 24 months abroad, or under-40s who spent the previous 12 months abroad for education.
• Short stays: Non-residents spending no more than 90 days in Serbia in a 12-month period and working exclusively for foreign principals with no business in Serbia are exempt from Serbian tax on that income.