Hire employees in Serbia
With Nomad Global Hire PEO / EoR (Employer of Record) services, you can easily hire employees in Serbia, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Serbia
Serbia has a highly educated and trained labor force
Employer Tax
Estimated at 17%
Currency
RSD, Serbian Dinar
Available Employee Benefits
Medical insurance, Meal Vouchers
Employee Tax
Incremental up to 15%
Payroll Frequency
Monthly over 12 payments
Main Universities
University of Kragujevac, University of Belgrade, University of Novi Sad
Capital
Belgrade
Population
Circa 7 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent
Croatia is not only a fantastic tourism destination and home to some of Games of Thrones characters, Croatia is also a young country bursting with trained skilled workers, innovation and investment. Companies who where once startups are not Unicorns (Ifobip) or have brought new technological advances in the food industry (Agrivi) or Electric super cars (Rimac Automobili). You can recruit directly or partner with local recruitment agencies (we can help find the right one), and NOMAD will manage the local employment for your new employees
Payroll, Benefits & Tax in Serbia
- Average salary in Serbia is 37,000 RSD per Month
- Employer Tax in Serbia is usually 17%
- This includes Pension, Health insurance and some Benefits
- Employee Tax in Poland is incremental up to 15%:
- There is a Tax-free amount set at 3,000,000 RSD
- Income Tax is at a flat rate of 10% for the income between 3,000,000 and 9,000,000 RSD of annual income
- Income Tax then steps to 15%% for the income in excess of 9,000,000 RSD
- Overtime in Serbia is not mandatory if included in the contract but employees will expect payment and compensation for extra hours which can cost up to 125%
- Payroll Frequency in Serbia is Monthly over 12 months
- Serbian employees expect fro their employers a basic salary, a performance based bonus, meal vouchers or payments, transport costs covered. We recommend investing in training which is important to Serbian employees
- Maternity Leave in Serbia is up to 1 full year paid by the employer in the first 30 days then by the Social Security fund. The Maternity leave must start at least 28 days before the birth of the child. Maternity leave can reach 2 years from the third child.
- The Paternity Leave in Serbia is only 7 days but businesses can choose to provide additional time at their own cost
- There is No Parental Leave in Serbia
- Sick Leave is covered for up to 1 year. The employer will pay 65% of the salary during the first 30 days then it will be covered by the Social Security at a specific rate depending on the medical condition
- Statutory Leave in Serbia is 20 days minimum per year
- Public holidays: there are 13 non-working national days in 2023 in Serbia
- Termination can only be done for a valid cause in Serbia although it can be straightforward, see below
- Notice period is between 8 and 30 days, but as mentioned below it depends on what has been agreed contractually
The Serbian Labor Code is setting the framework for employment in Serbia. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.
More information on using an Employer of Record (EoR) in Serbia can be read on this article
Onboarding and Termination in Serbia
- Probation period are not mandatory under Serbian Labour Law
- Probation period in Serbia however can be of a maximum of 180 days
- You can hire through Fixed Term Contracts, Indefinite / Permanent contract or BtoB contracts
- Employment Contracts must be drafted in Serbian although they can be bilingual so it can also be in English (but then has to be both at the same time)
- Termination is Serbia is generally a complicated process and requires particular care. In order to be compliant, Termination can occur for just cause only, so options are:
- By mutual agreement
- By resignation of the employee
- By expiration of contract
- By the employer on grounds of disciplinary dismissal, failure to perform in probation period, Objective cause or reduction of work or end of the activity
- It is always advised to reach a Mutual Agreement to validate a Termination in Serbia
- The minimum notice period in Serbia is only 8 days and the maximum is 30 days. Usually notice periods are embedded in contracts
- Severance payments in Serbia are mandatory and are calculated based on 1/3 of the monthly salary X number of years of employment. So someone with 3 years in a business would be entitled to 1 month severance payment on top of the notice period.
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An additional Deposit of 1 full month salary cost will be required
Estimated Employer tax costs
Employer Tax in Serbia is estimated around 17% (may vary depending on circumstances)
- Pension insurance
- Health insurance
- Meal Allowance
- Others
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