| Key Takeaways |
|---|
| 1 Serbia offers a competitive labor market and a growing tech ecosystem, making it an attractive base for expansion in Southeast Europe. |
| 2 Employment income is taxed at a flat 10% personal income tax, with an additional annual tax applying above certain income thresholds. |
| 3 Payroll is processed on a monthly basis, with salaries paid according to employment contracts and statutory deadlines. |
| 4 Employers and employees must contribute to mandatory pension, health, and unemployment insurance within prescribed salary caps. |
| 5 The statutory minimum wage is set on an hourly basis, and is reviewed annually by the Serbian government. |
| 6 Standard working hours are capped at 40 hours per week, with overtime limited and compensated at increased rates. |
| 7 Employees are entitled to at least 20 working days of paid annual leave, with mandatory rules on leave scheduling and carryover. |
| 8 Termination requires written notice and valid justification, with additional procedures for dismissals related to performance or misconduct. |
| 9 Redundancy dismissals trigger statutory severance pay equal to one-third of monthly salary per year of service. |
| 10 Slasify supports compliant hiring, payroll management, and EOR services in Serbia, helping businesses operate confidently across 150+ countries. |
Before Hiring in Serbia
Discover the global hiring and employment landscape in Serbia—an up-and-coming destination in Southeast Europe, known for its competitive labor market and burgeoning tech sector. Serbia's strategic location and pro-business climate make it an ideal hub for regional expansion.
Explore the employment essentials including payroll, personal income tax, statutory contributions, annual leaves, minimum wage, terminations, visa requirements, and more. Gain valuable compliance insights for a smooth entry into the dynamic Serbia market with Slasify's global premium HR platform.
At a Glance
| Capital | Belgrade |
| Currency | Serbian Dinar (RSD) |
| Payroll Cycle | Monthly |
| Minimum Wage | RSD 308 per hour |
| Annual Leave | 20 working days |
| Personal Income Tax | 10% |
Personal Income Tax
Employment income is taxed at a flat rate of 10%, calculated on the employee's gross salary, minus any deductions they may be entitled to.
Those whose income in a calendar year exceeds a certain threshold pay a progressive annual tax depending on their generated income. For 2025, the threshold for fiscal 2024 is set at RSD 4,874,508, i.e. 3 times the average gross earnings if RSD 1,624,836.
| Taxable amount | Annual tax rate |
|---|---|
| Up to 3 times the average annual salary | - |
| 3–6 times the average annual salary | 10% |
| Over 6 times the average annual salary | 15% |
Local Taxes
There are no local taxes on employment income in Serbia.
Statutory Contributions
Contributions for health, pension and unemployment insurance are calculated based on the employee's salary of at least RSD 45,950 up to a maximum of RSD 656,425.
Employer Contributions
| Contribution rate | |
|---|---|
| Health insurance | 5.15% |
| Pension insurance | 10% |
Employee Contributions
| Contribution rate | |
|---|---|
| Health insurance | 5.15% |
| Pension insurance | 14% |
| Unemployment insurance | 0.75% |
Payment of Wages
An employee's salary shall be paid within time limits determined by a bylaw and the employment contract, at least once a month.
Minimum Wage
Effective January 1, 2025, the minimum wage in Serbia is set at RSD 337 per hour.
Statutory Bonus
Employees shall be entitled to increased salary on grounds of time spent at work for each full year of service amounting to at least 0.4% of their base salary.
Termination
An employment relationship can be terminated by mutual agreement or by the unilateral decision of either part. In the event of unilateral termination by either party, the terminating party is obligated to notify the other of their decision in writing, with the employer being required to inform the employee of their reasons.
Employers may dismiss an employee for just cause relating to the employee's work ability and conduct, willful or neglectful breach of a work duty, lack of respect for work discipline, or for other reasons relating to the employer's needs.
| Reason for dismissal | Pre-dismissal procedure |
|---|---|
| Willful or neglectful breach of a work duty, or their lack of respect for work discipline |
Warn the employee in writing of the existence of cause for dismissal and give them at least 80 days to take a stand on the allegations. The warning sent to the employee must contain the grounds for dismissal, the facts and evidence which suggest that the conditions for dismissal were met, and the time period for giving a response. |
| Employee's work ability and conduct, i.e. unsatisfactory performance | Give a written notice of the employee's deficiencies in their work, guidance and appropriate deadline to enhance work performance. |
A comprehensive breakdown of the specifics that makes up the aforementioned categories can be found in Article 179 of the Employment Act.
Notice Period
In the event that the employee or employer decides to terminate their employment relationship, the following notice periods must be observed:
| Resignation | Dismissal |
|---|---|
| 15 days, which can be increased to up to 30 days | 8 days, which can be increased to up to 30 days |
The notice period for dismissal are only legally mandated for those dismissed due to unsatisfactory work performance. The dismissal of employees due to a serious cause, such as gross misconduct, can be made effective immediately as long as the proper procedure to ascertain the employee's guilt has been followed.
Severance Pay
In the even of employee redundancy, the employer shall pay their employees a severance equivalent a one-third of their monthly salary for each full year of service.
Probationary Period
Probationary period included in an employment contract may last for a maximum of 6 months. Employees who fail to present corresponding work and professional abilities during their probation shall have their employment relationship terminated at the end of their probationary period.
Prior to the expiration of the time for which the probationary work was contracted, the employer or the employee may terminate the employment contract with a notice period of at least 5 working days.
Work Time Rules
Standard Working Hours
Standard working hours in Serbia are subject to a maximum of 8 hours per day and 40 hours per week. A bylaw may institute shorter full-time working hours than 40 hours a week, but not shorter than 36 hours a week.
Break Period
Employees shall be entitled to 12 consecutive hours of rest between working days and a break period that varies in duration depending on how much they work per day, as follows:
| Working hours per day | Break period |
|---|---|
| Between 4 and 6 hours | 15 minutes |
| At least 6 hours | 30 minutes |
| More than 10 hours | 45 minutes |
The break period in course of daily work may not be used at the beginning or at the end of working hours, and these periods shall be calculated into working hours.
Furthermore, a nursing employee whose daily working hours amount to 6 or more hours shall, within a year after the birth of their child, enjoy the right to one or more breastfeeding breaks totaling to 90 minutes or the right of reducing their daily working hours by 90 minutes.
Overtime
Employees may be required to work beyond their standard hours in the event of force majeure, a sudden increase of volume of work and in other cases when it becomes indispensable to complete an unplanned work within a specific deadline.
Overtime work is subject to a maximum of 8 hours per week, and an employee cannot work more than 12 hours per day, including overtime.
Employees required to work overtime shall be paid an increased salary amounting to at least 26% of their base salary.
Weekly Rest Days
Employees shall be entitled to a weekly rest of at least 24 consecutive hours in addition to the 12-hour rest they are entitled to between work days.
An employee's weekly rest day generally falls on a Sunday, though the employer may determine another day for using the weekly rest, should the nature of work and organization of work so require.
If the employee is required to work on their weekly rest day, the employer is obligated to provide them with a compensatory rest of at least 24 consecutive hours in course of the subsequent week.
Holiday and Leave Entitlements
Public Holidays
Employees required to work on a holiday shall be entitled to an increased salary amounting to at least 110% of their base salary. There are 13 days of public holidays in Serbia for 2025.
| Holiday | Date |
|---|---|
| New Year’s Holiday | January 1–2 |
| Orthodox Christmas Day | January 7 |
| National Day Holiday | February 15–17 |
| Orthodox Easter Holidays | April 18–21 |
| May Day Holiday | May 1–2 |
| Armistice Day | November 11 |
In addition to the above, members of certain religious communities have the right not to work on the following days:
| Religious community | Religious holiday |
|---|---|
| Orthodox | First day of the baptismal feast |
| Catholics and other Christian religious communities | First day of Christmas and on the days of the Easter holidays, starting from Good Friday and ending with the second day of Easter, according to their calendar |
| Islamic communities | First day of Eid al-Fitr and the first day of Eid al-Adha |
| Jewish communities | First day of Yom Kippur |
Annual Leave
Employees are entitled to 20 working days of annual leave for each calendar year worked. They shall acquire the right to use annual leave in a calendar year after a month of continuous service.
In the event that the employee has not worked a full year of service in their first or last year of employment, their annual leave entitlement shall be prorated at one-twelfth of their full annual leave entitlement for each month worked in a calendar year.
Annual leave can be used all at once or in parts, provided that the following is observed:
| First part of annual leave | Subsequent part(s) of annual leave |
|---|---|
| Must be used in the duration of at least 2 consecutive weeks during the calendar year | Must be used by June 30 of the following year |
Sick Leave
Employees shall be entitled to paid sick leave in the event they become unable to work due to temporary impairment lasting up to 30 days, as follows:
| Sick leave pay | |
|---|---|
| Non-work-related sickness or injury | 65% of the employee's salary |
| Work-related sickness or injury | 100% of the employee's salary |
Sick leave pay shall not be lower than the established minimum wage, and it shall be calculated based on the employee's average salary in the 12 preceding months before the month in which temporary impairment occurred.
Generally, the employee or a member of their immediate family is obligated to deliver to the employer a medical certificate indicating the expected period of work inability within 3 days of the occurrence of their temporary inability to work.
Maternity Leave
A working mother shall be entitled to maternity leave due to their pregnancy and childbirth, as well as for nursing their child, with a total duration of 365 days.
| Maternity Leave | Nursing Leave |
|---|---|
|
The employee may commence maternity leave on the ground of finding of a competent health agency 45 days at the earliest, but imperatively 28 days prior to the time set for childbirth. The maternity leave lasts until the end of 3 months from the day of childbirth. |
After the expiry of the maternity leave, the employee can take the remainder of the 365 days to nurse their child. |
The total duration of maternity and nursing leave shall be increased to 2 years for the employee's third and subsequent newborn child.
Note: The right to use maternity leave shall also apply to employees whose child is stillborn or dies before the expiry of said maternity leave.
Paternity Leave
Employees shall be entitled to 5 days of paid leave in the event that their spouse is giving birth to their child.
The father of a child may take the leaves granted to mothers in cases where the mother abandons the child, dies or is prevented from exercising their rights due to other justified reasons. The father of the child shall have this right even when the mother is not employed.
Parental Leave
Employees may be entitled to take special leave to take care of their children with special needs. For more information, refer to the following:
| Topic | Relevant Articles of the Employment Act |
|---|---|
| Leave for employees whose child has psycho-physical impairment | 96 |
| Leave for foster parents to care for their child | 97 |
| Leave for employees whose child suffers from serious illnesses | 98 |
Other Leave
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Bereavement Leave | Paid | 5 days | Can be taken in the event of the death of an immediate family member. |
| Blood Donation Leave | Paid | 2 consecutive days | Can be taken when the employee makes voluntarily blood donations. |
| Family Care Leave | Paid | 5 days per year | For employees to care fore an immediate family member with serious illness. |
| Marriage Leave | Paid | 5 days per year | For employees who are getting married. |
| Pregnancy Checkup Leave | Paid | - |
For pregnant employees to perform medical examinations related to pregnancy, as instructed by their chosen physician. The employee must notify their employers of their checkup in a timely manner. |
For the purpose of determining an employee's right to the above leaves, immediate family members refer to the employee's spouse, children, siblings, parents, and those who live in the same household as the employee.
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