Employer of Record (EOR) in Serbia

Brain Source International helps you streamline hiring in Serbia without the need to establish a legal entity. Our Employer of Record (EOR) service takes care of onboarding, payroll, immigration, and benefits, ensuring a faster, compliant hiring process while reducing costs and saving you time.

What is an Employer of Record (EOR) in Serbia?

An Employer of Record (EOR) in Serbia is a strategic partner that acts as the legal employer for your employees residing in Serbia. The EOR takes on all employment responsibilities and liabilities on your behalf, handling payroll, benefits, taxes, and regulatory compliance.

By partnering with an EOR, you can hire employees in Serbia without the need to establish a local entity or navigate complex labor laws.

Employer of Record (EOR) in Serbia: Key Aspects of the Serbian Labour Code

General Information

• Currency: Serbian Dinar (RSD)
• Payroll Frequency: Monthly
• Capital: Belgrade
• Fiscal Year: 1 January – 31 December

Minimum Wage in Serbia

The minimum wage in Serbia is set at 67,566.33 RSD per month, ensuring a baseline income for workers across various industries. This wage regulation aims to provide fair compensation while supporting economic stability and workforce sustainability. Employers must comply with this standard to ensure legal and ethical employment practices within the Serbian labor market.

Payroll in Serbia

Payroll Cycle: In Serbia, the payroll frequency is typically on a monthly basis. The employer must make salary payments at least once a month.

13th Salary in Serbia

There is no legal requirement for 13-month payments. Employers may issue bonuses at their discretion.

Taxation in Serbia

Employer Payroll Contributions

Employee Income Tax

Would you like to know the approximate cost of employment in Serbia?

Working Hours in Serbia

General: The working week in Serbia is typically 40 hours, eight hours per day, five days a week.

Overtime: Work beyond the standard weekly hours is classified as overtime and is governed by the terms of the employment contract or collective agreements. Employees are limited to a maximum of eight overtime hours per week and four hours per day.

Overtime hours that exceed 40 hours per week are compensated at a rate of 126% of the employee’s average salary. For work done on public holidays, the compensation rate is 110% of the employee’s standard rate.

Leave in Serbia

Annual Leave (Vacation):

Employees are entitled to 20 days of annual paid leave after completing one year of service with their employer. If an employee has not yet worked for six months, they accrue leave at a rate of 1/12 per month. Any unused leave can be carried over and used until the end of June of the following year.

Public Holidays in Serbia

When public holidays fall on a weekend, they are observed on the next working day. Employees are entitled to paid leave for public holidays, with compensation based on their average salary over the preceding 12 months.

Sick Days in Serbia

Employees are entitled to 30 days of paid sick leave, compensated at 65% of their standard salary. If the illness is due to a workplace injury or occupational disease, the employer must compensate the sick leave at 100% of the employee’s wage. For sick leave exceeding 30 days, the state covers the additional leave beyond this period.

Employers are required to submit a medical certificate for the sickness within the first three days of the employee’s absence.

Maternity Leave in Serbia

Mothers are entitled to 365 days of maternity leave. If the mother gives birth to a third child, the leave duration extends to a total of 24 months. Maternity leave can begin up to 45 days and no less than 28 days before the expected due date.

During maternity leave, employees receive compensation based on their average salary from the past 12 months, with the payment capped at a maximum of five times the national average wage. This compensation is provided by the Government Republic Fund of Health Insurance from the first day of maternity leave.

If the employee returns to work before completing the full maternity leave period, the employer must grant a paid lactation break of 90 minutes per workday. If a mother experiences a miscarriage or a stillbirth, they are entitled to take off 3 months of paid leave.

Paternity Leave in Serbia

The father or partner is entitled to 5 days of paternity leave following the birth of the child. This leave is paid at the full salary rate by the employer.

Parental Leave in Serbia

Under certain circumstances, the partner may be able to take over the maternity leave entitlement from the mother. The specific conditions and process for this transfer are typically outlined by local regulations or policies, and it’s advisable to consult the relevant employment or health authorities for detailed guidelines.

Other Leave in Serbia

Bereavement Leave: Employees are entitled to 5 days of leave in the event of the death of a father, mother, spouse, or child.

Wedding Leave: Employees are entitled to 5 days of leave for their own wedding.

Blood Donation Leave: Employees are entitled to 2 days of leave for voluntarily donating blood.

Probation & Termination in Serbia

​In Serbia, employment contracts can include a probationary period of up to six months, allowing both employers and employees to assess suitability for the role. During this period, either party can terminate the contract with a minimum notice period of five working days. If the employer initiates the termination, they are required to provide a valid reason for the dismissal.

Termination of employment in Serbia is regulated to ensure fairness and compliance with labor laws. Employers may terminate an employment contract for various reasons, including:​

• Performance-Related Reasons: If an employee fails to achieve expected work results or lacks the necessary knowledge and skills to perform their duties, the employer must first provide a written notice detailing the deficiencies, offer guidance, and allow an appropriate period for improvement. If the employee does not improve within this timeframe, the employer may proceed with termination. ​
• Misconduct: In cases of breaches of work obligations or non-compliance with work discipline, the employer is obligated to issue a written warning to the employee, outlining the reasons for potential termination and allowing at least eight days for the employee to respond. If the misconduct persists, the employer may terminate the employment contract. ​
• Redundancy: Due to technological, economic, or organizational changes leading to the cessation of the need for a particular job, employers must develop a redundancy program and may be required to provide severance pay to affected employees. ​

Employees also have the right to terminate their employment contract by providing a written notice to the employer at least 15 days before the desired termination date.

It’s important to note that Serbian labor law prohibits termination based on discriminatory reasons, such as temporary absence due to illness, pregnancy, or maternity leave. Employers must adhere to the prescribed procedures to ensure compliance with legal standards and to uphold fair labor practices.

Brain Source International is an Employer of Record (EOR) service provider that operates in Serbia, among other countries. As an EOR, Brain Source International acts as the legal employer for employees working on behalf of client companies. This setup allows businesses to hire employees in Serbia without needing to establish a local legal entity.

Key Services and Benefits of Using an Employer of Record in Serbia:

1. Legal Compliance: Brain Source International ensures that all employment practices comply with Serbian labor laws, including contracts, payroll, benefits, and taxation.
2. Payroll Management: They handle all aspects of payroll, including salary disbursement, tax withholding, and social security contributions.
3. Recruitment and Onboarding: They assist in recruiting and onboarding employees, ensuring that all necessary legal documentation is completed and submitted.
4. Benefits Administration: The EOR manages employee benefits such as health insurance, paid time off, and other statutory benefits according to Serbian regulations.
5. Risk Mitigation: By managing employment risks and compliance issues, Brain Source International reduces potential legal and financial liabilities for client companies.
6. Local Expertise: Their local knowledge and expertise in Serbian employment practices and regulations help streamline the hiring process and address any regional complexities.

How It Works:

1. Hiring: Your company contracts with Brain Source International to employ individuals in Serbia. They become the legal employer of record.
2. Employee Management: Brain Source International takes care of employment contracts, payroll, and compliance with local labor laws.
3. Client Company: Your company manages the day-to-day tasks and responsibilities of the employees, while Brain Source International handles the administrative and legal aspects.

Using an EOR like Brain Source International allows companies to quickly and efficiently enter the Serbian market, hire local talent, and focus on their core business operations while ensuring compliance with local employment laws. With our expertise, you can seamlessly expand your business into Serbia, access a skilled workforce, and scale your operations without the complexities of establishing a local entity.