HR Software for Serbia

Leave Policy

Maternity Leave

Pregnant employees are entitled to 12 months of paid leave. 28 days must be taken before the birth of the child. During the vacation, the employee receives different salary levels:

Period	Pay	Payer
0 – 30 days	100%	Employer
30 days – 12 months	Average salary from the last 18 months	Social Security

The employee can extend leave an additional 3 months at the employee’s average salary from the last 18 months, paid by social security.

Paternity Leave

Employees are entitled to 9-21 months of paid paternity leave. The duration of the vacation depends on the employer. In addition, employees are entitled to an additional 5 days of paid leave if their legal spouse has a child. This leave is paid by the government at 100% of the employee’s salary.

Parental Leave

There is no law on parental leave in Serbia. However, employees may be entitled to maternity and paternity leave.

Sick Leave

Sick leave in Serbia is complex. Employees are entitled to up to 12 months of paid sick leave. This vacation is paid at different rates and by different payers depending on the duration and type of illness:

Period	Pay	Payer
0 – 30 days	65% of the base salary	Employer
30 days – 12 months. Depending on the illness, it can also be less	Depending on Sickness	Social Security

Pay & Tax

Minimum Wage Requirements

The national minimum wage for full-time employees is:

2023	2024
RSD 230 per hour	RSD 271 per hour

Individual Income Tax

Income tax is levied by the tax administration at a flat rate of 10%.
Taxpayers with an annual income that is at least three times the average annual income must pay additional taxes of between 10 and 15%.
Taxes are offset by a personal tax deduction of 40% of average annual income. Additional tax relief applies to taxpayers with dependents.

Payroll Cost

Employer costs are generally estimated at 15.15% of employee salary.

Pension insurance – 10% up to a maximum monthly salary for the contribution of RSD 573,470
Health insurance – 5.15% up to a maximum monthly salary for the contribution of RSD 573,470
Meal allowance – RSD 500
Employment Agreement Processing Fee – $80 USD

*For monthly salaries above RSD 573,470, the employer’s costs are limited to RSD 86,908.

These costs are estimates and are for general information purposes only. To fully understand all associated costs and fees associated with the terms of an employment contract for this country, please contact our sales team for a quote.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day and 40 hours per week from Monday to Friday.
Pay for overtime is not mandatory and can be compensated with salary. Overtime can also be paid as compensatory time off. Hours worked outside of normal working hours are considered overtime. Employees receive compensation for additional hours:

126% of the hourly rate for work from 10 p.m. to 6 a.m
126% of the hourly rate for work outside of normal working hours.
210% of the hourly rate for working on a public holiday.
For each completed year of employment with the employer in the amount of 0.4% of the basic salary.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps in certain termination cases.

Terminations in Serbia can be complex. In Serbia, employers cannot terminate at their own discretion and the termination must be for a valid reason.

Compliant terminations are:

Voluntary by the employee
By mutual agreement
Unilaterally by the employer due to:
- Probation period
- Objective reasons
- Dismissal for disciplinary reasons
- Performance due to unsuitability for the position
When the contract expires

Notice Period

If an employee is dismissed for breach of duty or due to incapacity or lack of qualifications, he or she has the right to continue working for a notice period of 5 to 30 days (depending on the duration of the pension insurance paid).
Otherwise, the following notice periods apply:
During the trial period: At least 5 days
After the trial period: Between 15 and 30 days

Severance for Employees

In Serbia, all employees who are laid off due to layoffs are entitled to severance pay. The severance payment is 1/3 of the employee’s monthly salary per year of service.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 20 days of paid time off (PTO) per year. PTO is credited monthly at 1.67 days per month. Employees are entitled to annual leave after one month of work.

Public Holidays

There are 7 national holidays in Serbia, some of which last more than 1 day. There are also several religious holidays that are not listed here.

New Year (2 days)
Orthodox Christmas
Statehood Day (2 days)
Orthodox Easter Friday
Orthodox Easter Monday
Labor Day (2 days)
Armistice Day in World War I

Onboarding

5 working days after signing the SOW.

Additional Info

Employment Contract Details

The contracts must be drawn up in Serbian and can be bilingual. Bonuses should be noted as an appendix. They must be in writing and signed by both parties.

A contract must contain:

Name and surname of the employee
Address from the identity card JMBG (personal citizen number)
Degree of training
Job based on training
Name of employer
PIB and MB number of the employer
Employer’s address
Name of the employer’s legal representative
Date of start of work
Duration of the employment relationship
Description of the position
Job title in Serbian language according to the Serbian Professional Code
Working hours
Holiday pay
Rewards (appendix)
Conditions for termination of employment
Notice period

Probation Period

Probation periods are not mandatory. The maximum probation period is 180 days.