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Employer of Record Serbia
Hire staff and expand your business in Serbia with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Serbia designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Serbia. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Serbia takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Serbia
A Brief Guide to Serbia
Serbia, known for its blend of cultures, is a country located in Southeastern Europe. It’s known for its vibrant history, diverse culture, and the breathtaking beauty of its natural landscapes, from the Danube River to the rugged mountains. Serbia is a parliamentary republic and participates in various international organisations, including the United Nations.
Category | Information |
Location | Southeastern Europe |
Capital | Belgrade |
Official Language | Serbian |
Area | 88,361 square kilometers |
Population | Approximately 7 million |
Currency | Serbian Dinar (RSD) |
Major Cities | Belgrade, Novi Sad, Niš, Kragujevac, Subotica |
GDP (2022) | $51.5 billion USD |
Major Industries | Energy, agriculture, mining, manufacturing, IT |
Business Culture
Business Culture in Serbia
In Serbia, business dealings value professional conduct, relationship-building, and a degree of formality. Punctuality is expected, and it’s customary to engage in small talk. Decision-making tends to be hierarchical, and preparation is highly valued. It’s standard practice to exchange business cards and use appropriate titles when addressing individuals.
Payroll and Taxes
Payroll and Taxes in Serbia
In Serbia, a 13th-month salary is often paid in December, while a 14th-month salary is less common but not unheard of.
Employee Taxation
The Serbian income tax system is progressive, with higher income brackets subject to higher tax rates.
Gross Annual Income | Tax Rate (%) |
Up to RSD – 2,987,424 | 0% |
Up to RSD – 8,962,272 | 10% |
Over RSD – 8,962,273 | 15% |
Employer Taxation
Employers in Serbia are also responsible for various employer costs, which include:
Fund Type | Percentage |
Pension and Disability Fund | 10% |
Health Insurance Fund | 5.15% |
There is also a meal allowance of 500RSD per day to be paid by the employer
Pension and Healthcare
Serbia Pensions
Serbia has a mandatory state pension system, funded by social security contributions from both employees and employers. The contribution rates, as a percentage of an employee’s gross salary, are as follows:
- Employees: 14%
- Employers: 10%
Healthcare in Serbia
Serbia’s public healthcare system provides comprehensive medical services to its residents, including primary care, specialist services, hospital care, prescription medications, dental care, maternity care, and mental health services. The system aims to ensure equal access to essential healthcare services for all residents, regardless of their financial status or geographical location.
Both employees and employers contribute to the system through a percentage of their salaries. This mandatory contribution is collected by the Serbian tax authorities and allocated to the healthcare system.
Employment Law
Employment Law in Serbia
Relevant Legislation:
Serbian employment law is governed by various pieces of legislation, including:
- Labor Law
- Law on Safety and Health at Work
- Law on Peaceful Resolution of Labor Disputes
- Law on Employment and Unemployment Insurance
Employment Contracts: Serbian employment contracts should be in writing and include essential information such as duration of employment, working hours, salary, and termination notice periods.
Working Hours: The standard maximum working time in Serbia is 40 hours per week, or 8 hours per day. Overtime work is regulated, with compensation for extra hours.
Leave: Employees in Serbia are entitled to various types of leave, including paid annual leave (minimum of 20 working days per year), maternity leave, paternity leave, sick leave, and family care leave.
Overtime: In Serbia, overtime work is regulated by law and collective agreements. In general, Serbian law stipulates that overtime pay should be at least 1.5 times the regular hourly wage for the first eight hours of overtime work per week and 2.0 times the regular hourly wage for additional hours of overtime work.
Termination: Termination of employment in Serbia requires proper notice, which varies depending on the length of employment. Employers can terminate an employee’s contract if there is a just cause, such as poor performance, misconduct, or redundancy. Employers must provide a written explanation for the termination based on just cause. Unjustified termination can lead to claims for damages or reinstatement.
Notice: Both employers and employees must give notice before terminating an employment contract. The notice period varies depending on the employee’s length of service. Generally, the notice period ranges from 15 days to 30 days.
Severance Pay:
Employees may be entitled to severance pay if they are terminated due to redundancy, restructuring, or other reasons that are not related to their performance or behavior. Severance pay is typically not provided in cases of termination due to misconduct, resignation, or the end of a fixed-term contract. The amount of severance pay an employee is entitled to often depends on their length of service with the employer. In Serbia, employees must have worked for a minimum of one year to qualify for severance pay, and the amount increases with the number of years of service.
IMMIGRATION
Work Permits in Serbia
The immigration process in Serbia is organized and systematic, similar to most countries worldwide. Prospective immigrants usually need to apply for a specific visa or residency permit that corresponds to their reasons for relocating, such as work, education, or joining family members.
Serbia offers several types of work permits for foreign nationals who wish to work in the country. The specific type of work permit required depends on the applicant’s qualifications, the nature of the job, and the intended duration of the stay. Some of the main types of work permits in Serbia include:
- Employment Work Permit: This permit is designed for individuals who have a valid job offer from a Serbian employer. The employer must demonstrate that the job cannot be performed by a Serbian citizen or a foreigner who already has a work permit.
- Personal Work Permit: This permit is issued to foreigners who wish to be self-employed in Serbia. The applicant must prove that their business activities will not adversely affect the labor market.
- Temporary Work Permit: This permit is issued for short-term employment and is generally valid for up to 90 days within a six-month period. Temporary work permits are typically granted for seasonal work, internships, or other temporary job opportunities.
Citizens of European Union (EU) countries generally do not need a work permit to work in Serbia, as Serbia has a reciprocal agreement with the EU. However, they are required to register with the local Serbian authorities if they plan to work and stay in Serbia for more than 90 days.
Public Holidays
Serbia Public Holidays
Holiday Name | Date |
New Year’s Day | 1st-2nd January |
Serbian Orthodox Christmas | 7th January |
Statehood Day | 15th-16th February |
Orthodox Good Friday | Varies |
Orthodox Easter Monday | Varies |
International Worker’s Day | 1st-2nd May |
Armistice Day | 11th November |
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The Benefits
Serbia Employer of Record Benefits
When you choose Agility EOR to expand in Serbia, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Serbia so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Serbia authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Serbia payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.