How to hire and pay EMPLOYEES IN

Serbia

Looking to hire remote workers to join your team? No matter where in the world your employees work, Oyster makes it easy for you to hire, pay, and take care of employees hassle and worry-free.
Sign Up for a Free Account

Before hiring

EMPLOYEES IN
Serbia

Before hiring employees in Serbia, there are a few important things you’ll need to know. Firstly, in Serbia, non-compete agreements must be limited in scope. They can last for a maximum of two years after termination of the employment relationship.

It’s also important for employers to know that there is no specified paternity leave in Serbia, but under certain circumstances, the father could use maternity leave if the mother is unable to care for the baby during that period.

We know this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform. 

Get an overview of what you need to know when hiring in Serbia below.

At a Glance

CURRENCY

RSD

OFFICIAL LANGUAGE

SERBIAN

PAYROLL FREQUENCY

MONTHLY

PUBLIC HOLIDAYS

UP TO 10

(based on region;
see here
)

EMPLOYER TAXES

16.65%

of gross salary

13th / 14th SALARY

N/A

Good to know

  • Employees are entitled to severance pay in the event of termination of employment due to redundancy. The amount of this payment cannot be lower than the sum of one third of the employee's salary for each completed year of employment.
  • Employees acquire certain rights on the basis of their period of employment. They are entitled to a 0.4% increase in their basic salary for each year of employment with the same employer.
  • Employees are entitled to a transportation allowance of RSD 3,275 per month when the employer doesn't provide a car or public transport tickets.

Employment in

Serbia

Working hours and overtime

Employees in Serbia work eight hours per day, 40 hours per week.

Any overtime work over eight hours per day or 40 hours a week is paid at 126% of regular pay. Overtime work is limited to eight hours per week and four hours per day.

Employment contracts
Probationary period

In Serbia, the probationary period is no longer than six months. 

Pensions
Notice period

The minimum notice for terminations is 15 days, and it cannot be longer than 30 days.

IP protection and non-compete agreements

In Serbia, non-compete agreements must be limited in scope. They can last for a maximum of two years after termination of the employment relationship, and the employer must pay the former employee monetary compensation in the amount agreed in their employment agreement.

Employment cost calculator

Holidays

01 Jan

New Year's Day

30 Apr

Orthodox Good Friday

02 Jan

New Year Holiday

01 May

May Day

07 Jan

Orthodox Christmas Day

03 May

Orthodox Easter Monday

15 Feb

National Day

04 May

May Day Holiday

16 Feb

National Day Holiday

11 Nov

Armistice Day

01 Jan

New Year's Day

02 Jan

New Year Holiday

07 Jan

Orthodox Christmas Day

15 Feb

National Day

16 Feb

National Day Holiday

30 Apr

Orthodox Good Friday

01 May

May Day

03 May

Orthodox Easter Monday

04 May

May Day Holiday

11 Nov

Armistice Day

Employer tax

An employer’s social contributions in Serbia total 16.65%. This includes pension and disability insurance (11.5%) and health insurance (5.15%). Employers also pay a transportation allowance of RSD 3,275.

Individual tax

In Serbia, income tax is between 0% and 15% depending on an employee’s salary bracket. Employees also pay 19.9% social security tax, which includes pension and disability insurance, health insurance, and unemployment insurance. 

Termination of employment

In Serbia, an employee can be dismissed based on one of the following grounds:

  • Failure to achieve work results (i.e. incompetence)
  • Work-related criminal act
  • Failure to return to work within 15 days after the expiry of unpaid leave or stay of employment
  • Intentional breach of a work duty
  • Breach of the workplace discipline
  • Redundancy
  • Refusal of the employee to add an annex to the employment agreement for certain specific reasons

In the event of termination of employment due to redundancy, a severance payment is required. The amount is determined by a general act or employment contract, provided that it cannot be lower than the sum of one third of the employee's salary for each completed year of employment.

Upon retirement, employees are entitled to a severance payment equivalent to two average salaries.

Start hiring employees in

Serbia

Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast. 

We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities. 

With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.

Hire a team of A-players,
wherever they work in the world.

Get started today!