
Employment in Serbia at a glance
Capital
Belgrade
Language
Serbian
Remote workers
219,100+
Currency
Serbian dinar (RSD)
Working hours
40 hours
Public holidays
12 days, plus religious holidays
Minimum hourly salary
RSD371
Tax year
Jan 1 - Dec 31
Date format
DD/MM/YYYY
Misclassification penalties
If a contractor is found to be an employee in substance, the worker is treated as employed on an indefinite contract, with full rights to leave, notice and severance. The company owes back salary tax and both sides' social contributions with interest, plus fines of RSD 800,000 to 2,000,000.
Fun fact
Serbia is one of the world's largest exporters of raspberries. The fruit is such a national staple that Serbia is often called the raspberry capital of the world.
Taxes in Serbia
EMPLOYER CONTRIBUTIONS
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Social security contributions: 15.15%
Social security contributions: Pension and disability insurance (PIO)
Contribution amount: 10%
Social security contributions: Health insurance
Contribution amount: 5.15%
Contribution bases for 2026 run from RSD 51,297 to RSD 732,820 a month. Serbia offers meaningful hiring reliefs for start-up founders, R&D staff and long-term unemployed hires.
EMPLOYEE CONTRIBUTIONS
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Income tax: 10% flat + 10%-15% progressive
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Social security contributions: 19.9%
Social security contributions: Pension and disability insurance (PIO)
Contribution amount: 14%
Social security contributions: Health insurance
Contribution amount: 5.15%
Social security contributions: Unemployment insurance
Contribution amount: 0.75%
Income tax
Annual income: Up to RSD 5,439,096
As a multiple of the average annual salary: Up to 3×
Progressive rate: N/A (below the threshold)
Annual income: RSD 5,439,096 to 10,878,192
As a multiple of the average annual salary: 3× to 6×
Progressive rate: 10%
Annual income: Above RSD 10,878,192
As a multiple of the average annual salary: Above 6×
Progressive rate: 15%
Salary is taxed at a flat 10%, charged after a monthly non-taxable amount of RSD 34,221. High earners also pay a progressive annual surtax on top, shown above, which applies only to the portion of income above each threshold.
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Employer of Record in Serbia
What is an EOR?
An Employer of Record is the legal employer of a worker in Serbia. The EOR takes care of the Serbian compliance side of employment, payroll, taxes, statutory benefits, and employment contracts, while the company directs the employee’s day-to-day work.
EOR responsibilities
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Employment contracts compliant with the Serbian Labour Law, in writing, before work starts
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Registration with the social insurance registry (CROSO) before day one
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Monthly payroll, tax withholding and contribution filings
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Payslips at every payment and statutory record-keeping
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Administering statutory entitlements: leave, sick pay, maternity, severance
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
Is the legal employer and 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 arrangement, 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
Public healthcare coverage through the Republic Health Insurance Fund (RFZO).
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Social security
Includes state pension (PIO) and unemployment insurance (NSZ).
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Mandatory allowances
Commuting reimbursement, meal allowance, and annual leave bonus (regres) are mandatory employer payments.
Common non-mandatory benefits in Serbia
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Flexible working hours
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Remote-work options
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Private health insurance
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Paid training
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Extra days off
Rights & protections in Serbia
Written employment contract
Payslips at every payment
Health & safety at work
Union membership
Protection of privacy and personal data
Protection from harassment
Whistleblower protection
Employment transfer protections
Protection from dismissal
Leave in Serbia
Annual leave
Minimum 20 working days
Public holidays
Non-working state and religious holidays, plus each employee’s personal faith day
Sick leave
First 30 days employer-funded: 65% for illness and 100% for work injury; health fund thereafter
Maternity and childcare leave
1 year in total, or 2 years for a third child; compensated at 100% of an 18-month average, capped at five average salaries
Paternity leave
Paid days at birth; the childcare-leave portion from month three onward can be used by the father instead of the mother
Employment conditions in Serbia
Probation and fixed-term contracts
Probation can last up to 6 months. Fixed-term contracts are generally capped at 24 months with automatic conversion on breach.
Non-compete, IP and internal rules
Post-termination non-competes can last up to 2 years and require compensation. Employers generally hold economic rights to software created during employment, unless agreed otherwise. An internal rulebook is mandatory for employers with more than 10 employees.
Payments in Serbia
Payday
Salary payable by the end of the current month for the previous month, in dinars.
Pay frequency
Salary at least monthly. Minimum wage RSD 371/hour net. Mandatory add-ons: seniority uplift (0.4% per year of service), commuting, meal allowance, regress.
Working hours in Serbia
40-hour week; overtime capped at 8 hours a week within an absolute 12-hour day; +26% for overtime and night work, +110% for holiday work; 30-minute daily break and 12-hour daily rest.
Remote work in Serbia
Statutorily recognised, with mandatory contract content (supervision, equipment, cost reimbursement), an explicit pay-parity rule, and a home-work risk assessment under the 2023 OSH law.
A new Labour Law modernising remote work is expected around the end of 2026 but is not yet law.
Independent contracting in Serbia
Serbia recognises several non-employment engagement forms, including service contracts, author contracts, temporary work capped at 120 days a year, and registered sole traders.
The boundary with employment is closely regulated: a nine-criteria independence test applies to sole traders, working without a written contract results in indefinite employment from day one, and company fines for misclassification can reach RSD 2,000,000. Freelancers paid from abroad follow a separate quarterly self-taxation regime.
End of employment in Serbia
Termination needs a statutory ground and a formal written procedure with a warning and response period.
Notice: 8-30 days (capability dismissals), 15-30 days (resignation). Redundancy severance: at least a third of a monthly salary per year of service, paid before termination, with a 3-month re-hiring ban on the role. Employees can challenge dismissal in court within 60 days.
FAQs
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.
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