Serbia

Companies hiring in Serbia generally consider four approaches: running payroll from HQ for short-term arrangements, engaging contractors for genuinely project-based work, setting up a local entity to hire directly, or partnering with an Employer of Record. An EOR allows compliant Serbian employment without establishing a local entity, important in a country where employment must be documented in writing and registered before day one.

Yes, for genuinely project-based work with real independence. A contractor is the wrong structure when the person works like an employee: set hours, the company’s tools, ongoing work, one main client. Serbia applies a statutory nine-criteria independence test to sole traders; meeting five criteria with one client triggers tax reclassification, and labour inspectors can order that a de facto employee be formally employed.

A written contract signed before work starts, CROSO registration before day one, at least monthly payroll with payslips, the statutory minimums for leave (20 working days), sick pay, working time and overtime, the mandatory salary add-ons (commuting, meal allowance, regres, seniority), and formally correct termination procedures. Getting the sequence right matters as much as the substance; an unsigned contract means the person is legally an indefinite employee.

Employer social contributions add 15.15% on gross salary (up to the monthly contribution ceiling of RSD 732,820 in 2026). On top of that, budget for the mandatory commuting reimbursement, meal allowance and annual leave bonus, whose amounts are set in the employment contract or company act.

An Employer of Record is the legal employer of the individual in Serbia for government, tax, and employment purposes. It provides a locally compliant employment contract, registers the employee with CROSO before day one, runs payroll, files employment taxes and contributions, and administers statutory entitlements such as 20 days of annual leave, sick pay and maternity leave. The company sources the worker, manages the day-to-day work and funds payroll each cycle.

Yes, Serbian statutory rights attach to the employment relationship itself, and an employee hired through an EOR has a standard Serbian employment contract, so the full set applies: minimum 20 working days of annual leave, sick pay, maternity and childcare leave, notice periods, severance on redundancy, and health, pension and unemployment insurance through the mandatory contributions.

Boundless works with employment lawyers and advisers in the countries it operates in, including Serbia. Employment contracts and onboarding documents follow the local rules and Serbian specifics; payroll and contribution filings, data protection, notice periods, and remote-work documentation are built into how the employment is run. When a sensitive question arises, the internal team takes it to local counsel promptly.

Maternity and childcare leave together last a year (two years from the third child), compensated at 100% of the employee’s 18-month average base, capped at five average salaries. The employer pays the compensation and is reimbursed by the state, and dismissal during pregnancy and leave is prohibited, with fixed-term contracts extended to the end of the leave.

Yes, remote work is statutorily recognised, but it must be documented: the employment contract needs specific remote-work content (working time norms, supervision method, equipment and cost reimbursement), remote salaries cannot undercut on-site pay for the same job, and the general working-time and leave rules continue to apply.