Employment in Serbia is governed mainly by the Labour Law (Zakon o radu), with collective agreements and employer rulebooks adding to it. Here is what employers need to know about leave, pay, tax, social contributions and ending employment.
The Labour Law sets minimum leave for all employees. The employer's general act (collective agreement or rulebook) and the employment contract often add more days based on experience, working conditions and qualifications.
At least 20 working days a year, available after 1 month of continuous work. It cannot be waived or replaced with money, except on termination.
At least 65% of average pay for illness, and 100% for a workplace injury, paid by the employer. From day 31 the Health Insurance Fund pays.
In total, starting 28–45 days before the due date. Two years for a third or later child.
Up to 5 working days a year in total for marriage, the birth of a child, serious illness in the family and similar events.
Maternity leave runs until the child is 3 months old, after which the mother may take childcare leave until 365 days from the start of her maternity leave. The father can use the childcare leave if the mother cannot, and fathers are entitled to paid leave on the birth of a child within the 5-day family events allowance. Salary compensation during maternity and childcare leave is paid under the law on financial support for families with children, based on the employee's past earnings.
Set up each Serbian leave type in IceHrm with its own accrual, carry forward and approval rules, including extra annual leave days by seniority and pro-rata entitlements for new starters. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The minimum wage is set as a net hourly rate each year by the Social and Economic Council or, failing agreement, by the government. Collective agreements can set higher rates.
For pay periods in 2026, excluding tax and contributions. It rises to RSD 405 an hour for 2027 (decision published in August 2026).
Usually 5 days of 8 hours. A general act may set full time at 36–40 hours.
At least 26% on top of base pay. Overtime is limited to 8 hours a week and 12 hours a day in total.
Salary must be paid at least once a month, no later than the end of the month for the previous month, with a pay slip showing how it was calculated.
Capture attendance, overtime and night hours in IceHrm and feed them straight into payroll, so each premium reflects what was actually worked. Time & attendance →
Salaries are taxed at a flat rate that the employer calculates and withholds at each payment. Higher earners also pay an annual supplementary tax, which they file for themselves.
| Tax | Base | Rate |
|---|---|---|
| Salary tax | Gross salary minus a non-taxable amount of RSD 34,221 a month | 10% |
| Annual supplementary tax | Net annual income between 3 and 6 times the average annual salary | 10% |
| Annual supplementary tax | Net annual income above 6 times the average annual salary | 15% |
Personal deductions reduce the base for the annual supplementary tax, and taxpayers under 40 get an extra reduction. The thresholds are based on the average salary published by the Statistical Office.
Social insurance contributions are calculated on gross salary. The employee's share is deducted from gross pay, and the employer's share is paid on top. Both are calculated and paid by the employer with each salary payment.
Pension and disability insurance 10% and health insurance 5.15%.
Pension and disability 14%, health 5.15% and unemployment 0.75%, withheld from gross pay.
Contributions are capped at 5 times the average monthly salary. The minimum base is about 35% of the average monthly salary.
Build Serbian pay the way you already structure it, with your own salary components, deductions and formula columns, such as the seniority increase or a contributions column. Want to know how well IceHrm handles payroll calculations for Serbia? Contact us or see Payroll →
An employer can only dismiss an employee for a justified reason set out in the Labour Law: one relating to the employee's work ability or conduct, or economic, technological or organisational changes that make the job redundant. Dismissal must be made by a written decision.
| Situation | Notice |
|---|---|
| Termination during probation (either party) | At least 5 working days |
| Resignation by the employee | At least 15 days (max 30) |
| Dismissal for poor results or lack of skills | 8–30 days, based on insurance record |
Employees dismissed for redundancy must receive severance before the dismissal takes effect. It is set by the general act or contract, but can be no less than one third of the employee's salary for each full year of employment with the employer.
Final pay includes compensation for any unused annual leave.
Serbia's public holidays are set by the Law on State and Other Holidays. If a non-religious holiday falls on a Sunday, the next working day is a day off. Orthodox Easter follows the Julian calendar.
Employees of other faiths may take their own religious holidays off, such as Catholic Christmas and Easter, Eid al-Fitr, Eid al-Adha and Yom Kippur. Orthodox employees may take their family patron saint's day (slava).
Leave groups give each office its own holiday calendar, so your Belgrade team gets the right days off, while leave types handle religious holidays and slava days individually. Holiday calendars →
Employment starts with a written employment contract signed before the employee starts work. The employer keeps a copy at its premises, and must register the employee for compulsory social insurance before they start.
Send contracts for e-signing, store them on the employee's record with the contract type and end date, and track onboarding with task lists so registrations are done before day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Serbia, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Serbia? Talk to us.
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