Payroll & Employment Guide Serbia flag

Payroll & Employment Guide Serbia

Serbia is an emerging destination for international hiring in Southeast Europe. With a skilled, multilingual workforce, attractive tax incentives, and competitive labour costs, Serbia is increasingly appealing to businesses looking to expand or hire remotely. The country’s strong tech talent pool, stable infrastructure, and growing digital economy make it a valuable hub for global operations.

Payroll & Employment Guide Serbia
CurrencySerbian Dinar (RSD)
LanguagesSerbian
Minimum wageRSD 53,529 per month
Employment costGross income + contributions
Working hours40 hours per week
VAT20% general rate, 10% special rate
Probation periodUp to 6 months
Paid leave days20 working days
Categories

Hiring guide

Serbia offers access to highly educated talent, particularly in sectors like IT, engineering, and customer support. The government actively encourages foreign investment through labour law reforms and tax incentives. Understanding Serbia’s employment structure, benefits, and compliance obligations is key to successfully hiring here.

Learn more about employment costs, salary structures, and legal requirements.

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Employment contracts

In Serbia, employment contracts must be concluded in writing and typically follow the Labour Law framework. Contracts can be indefinite or fixed-term, and must include job duties, salary, working hours, and other conditions.

Notice periods: Vary by length of service, usually between 15 and 30 days
Termination of employment: Can happen through resignation, mutual agreement, dismissal for cause, or redundancy

Want to learn more about employment contracts in Serbia? Get our full template now!

Employee benefits

Employers must provide statutory benefits, but many also offer extra perks to attract top talent.

Mandatory benefits: Health insurance, pension, unemployment insurance
Common perks: Private health packages, meal allowances, remote work options
Leave policies: Paid annual leave (20+ days), sick leave, maternity/paternity leave

Want to learn more about all the employee benefits available in Serbia?

Taxes

Serbia has a competitive flat personal income tax rate and reasonable corporate tax obligations. Employers are responsible for withholding taxes and making social security contributions.

  • Personal income tax:
  • 10% on income up to 6x the average annual salary
  • 15% on income exceeding that threshold
  • VAT: 20% standard, 10% reduced rate
  • Taxes on capital income:
  • Interest income: 15% (applies to savings, loans, deposits, bonds, etc.)
  • Dividend income: 15%

Royalty income: 20%

Want to find out more about Serbia’s tax allowances and similar tax regulations? Click here to read more now!

Payroll

Serbian payroll must comply with monthly salary, benefits, and tax obligations. Payments are typically made in RSD, with reports submitted to the tax authorities.

Salary payment deadline: By the last working day of the following month
Taxes and contributions payment deadline: Same day as the salary payment
Payroll declarations deadline: Must be done before net salary payment, but can be done on the same day.
Payroll currency: RSD

Want to learn more about Serbia’s regulations about payroll, salaries, and contributions? Click here to read more now!

Work permits & visas

Foreign nationals must hold valid work and residence permits to work and stay in Serbia. The exact requirements depend on the nationality of the applicant, job type, and length of stay.

Types of permits: Work permit and residence permit
Process length: 2-3 months
Process cost: Starts at 1500 EUR

Want to learn more about obtaining visas and work permits in Serbia? Get our full country handbook now, or click here to find out more!

EOR services

Using EOR services in Serbia allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:

  • Legal employment and contracts
  • Payroll processing
  • Tax withholding
  • Benefits administration
  • Onboarding/offboarding employees

PEO services

Using PEO services in Serbia provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Serbia but need support to manage their workforce operations, including:

  • HR support and workforce administration
  • Payroll and benefits management
  • Compliance and local labour law guidance
  • Employment contracts assistance

Payroll calculator

Native Teams offers a country-adjusted payroll calculator for 85+ countries, including Serbia. Easily estimate gross-to-net salaries, taxes, and mandatory contributions in a few clicks.

Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.

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Frequently asked questions

Freelancers and gig workers in Serbia are generally expected to register as self-employed and manage their own tax and social security contributions. As a hiring business, you're not liable for these payments, but it's crucial to ensure the nature of the engagement doesn't mirror a traditional employee role - otherwise, you risk misclassification issues.

To protect your business, it’s advisable to have a well-defined agreement in place that clearly outlines the scope of work, payment structure, timelines, and responsibilities. This helps set expectations and maintains legal clarity for both parties.