What Should I Know About Hiring in Serbia?
The legal requirements for recruiting employees in Serbia might be complex, so you must familiarize yourself with the country’s labor regulations before making any hiring decisions. In addition to possible legal repercussions, your business’s reputation could be harmed if it is found to be in violation of these regulations.
There are a number of regulations that businesses must meet in Serbia before they can hire new staff members. As part of the hiring process, a written employment contract outlining wages, hours worked, and other employment terms must be provided to employees by their employers.
Furthermore, Serbian labor laws are designed to protect workers’ rights, and employers must comply with these laws. In addition to paying their employees at least the federal minimum wage, businesses are required by law to ensure a safe and healthy workplace.
Why Is Serbia a Good Choice for Finding Remote Employees?
There are several reasons why Serbia is an excellent place for firms to hire remote workers, including the country’s highly skilled workforce, low labor costs, supportive government legislation, and advantageous time zone.
The workforce in Serbia is highly educated and talented, notably in information technology, engineering, and manufacturing. Several Serbs have worked for foreign firms; therefore, they are accustomed to Western business customs and speaking methods.
The Serbian government hopes to entice foreign investors and spur economic expansion by creating a business-friendly regulatory framework, among other measures. In addition, Serbs have earned a positive reputation for their work ethic and dedication. To that end, they are an ideal fit for any organization needing committed workers.
How Can Native Teams Help You Hire in Serbia
Simplify your search for remote workers in Serbia with the assistance of Native Teams.We can assist you in hiring new team members, onboard them, and ensuring they are paid, taxed, and provided for per Serbian law. Companies may now hire employees in any nation thanks to Native Teams’ employer-of-record solution, which eliminates the need to set up a wholly new legal entity and guarantees adherence to all applicable local employment rules.
Hire your first Serbian employee with Native Teams.
Legal Requirements for Hiring in Serbia
To calculate the salary and taxes in Serbia please click here.
In Serbia, the monthly minimum wage is currently set at RSD 49,399.
Contributions & Taxes
How much are the contributions & taxes?
The average estimate of the employer’s cost is 17% of the worker’s salary.
- Pension Insurance: 11.50%;
- Health Insurance: 5.15%;
- Meal Allowance: 500 RSD.
Serbia has a corporate income tax of 15%.
The total cost of employees is 19.90%
Personal income is subject to a 0%-15% tax bracket. Generally speaking, tax rates on income are progressive. Other factors, like marital status and the number of children in the home, may also affect average rates.
What is the payroll cycle?
Wages are typically paid on the 15th of the following month, following a monthly payroll cycle.
Is there a 13th salary in Serbia?
The 13th wage payment is not required in Serbia.
What are the main Labor Rules?
Probationary periods in Serbia are not standardized and might change based on the specifics of each employment agreement. Probation, however, cannot go longer than 6 months.
The employer or employee can end the agreement with just 5 days’ notice during probation.
In the employment contract, the duration is specified; 15 days is the minimum, and 30 days is the maximum notice period.
In Serbia, severance pay is payable to any employee let go due to layoff. The employee receives 1/3 of their monthly wage for each year of service as severance pay.
The standard workweek in Serbia consists of 40 hours or 8 hours per day. Time worked more than 8 hours per day or 40 hours per week is compensated at 126% of the hourly rate.
Leave and Benefits
Leave and Benefits rules
Serbia has a convoluted system of national holidays. For 21 days, Serbs celebrate 14 national holidays, not all of which are official days off from work due to their religious origins.
Among the national holidays are:
- New Year – (2 days)
- Meeting – Serbian Statehood Day (2 days)
- Labor Day – (2 days)
- Armistice Day in the First World War
- The first day of Christmas
- Easter holidays (4 days)
- Orthodox – on the first day of baptism – (Religion Dependant)
- Members of the Islamic community – on the first day of Eid al-Fitr and the first day of Eid al-Adha – (Religion-dependent)
- Members of the Jewish community – on the first day of Yom Kippur – (Religion-dependent)
- Saint Sava – (Working day)
- Day of Remembrance for the Victims of the Holocaust, Genocide and Other Victims of Fascism in the Second World War – (Working day)
- Victory Day – (Working day)
- Vidovdan – (Working day)
- Day of Remembrance of Serbian victims in the Second World War – (Working day)
Employees are entitled to full compensation for up to 30 days if they cannot work because of an on-the-job accident. The employee is eligible for 65% of their regular pay if the injury or illness was not work-related.
Maternity leave & Paternity leave
Mothers are eligible for maternity leave benefits beginning between 28 and 45 days before their expected date of birth and up to 365 days if they also take advantage of childcare leave benefits. During this time, an employee is paid at least five times the national average wage, up to the average of their earnings for the previous 12 months.
Paternity leave is awarded to the father or spouse for 5 days following the birth of a child. Only in rare cases will the employee be eligible to receive the compensated entitlement.
When a close family member dies, a worker in Serbia is entitled to time off. 5 days of paid time off are given to employees who have suffered the loss of a parent, spouse, or kid.
After the child is placed in their care for adoption, the adoptive parents are entitled to 8 months of leave until the child turns 5. The adoptive parents are allowed to leave when the adopted kid is under 3 months old until the age of 11.
What are the minimum vacation days?
After working for a company for a year, workers are entitled to 20 days of paid vacation. Annual leave is accrued at a rate of 1/12 per month for employees who haven’t been with the company for 6 months.
Health Security & Private Insurance
Government health providers offer medical services directly to patients. Benefits include general and specialist care, hospitalization, laboratory services, dental care, maternity care, and transportation.
*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*
Relocation and Work Permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the Visa / Work Permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
To apply for a visa/work permit in Serbia, upload the documents from our onboarding list (relocation to log in/pricing).
Why use Native Teams for Hiring in Serbia?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.
*Note: The provided information was accurate at the time of writing.