Serbia is a landlocked country in central Europe, bordered by Hungary, Romania, Bulgaria, North Macedonia, Croatia, Bosnia and Herzegovina, Kosovo, and Montenegro.

The country is situated at the crossroads of the Pannonian Plain and the Balkans. Serbia has an upper-middle income economy, and has been negotiating its EU accession since 2014.

Types of Contracts

In Serbia, the following contract types are available:

• Fixed-term contracts
• Indefinite contracts

Working Hours

The standard working hours in Serbia are 8 hours per day and 40 hours per week.

Overtime

Overtime in Serbia cannot last for more than 8 hours per week, or 4 hours per day per employee. Any employee working overtime shall be entitled to a premium of 26% of the basic salary.

Minimum Wage

In 2024, Serbia's national monthly minimum wage is RSD 271 per hour and RSD 47,154 per month.

Probation Period

Probation periods are not mandatory in Serbia, and there is no minimum probation. The maximum probation is 6 months.

‍

Taxes & Local Employment Costs

Employee Taxes

Taxes for employees in Serbia are broken down as such:

• Pension = 10%
• Health Insurance = 5.15%
• Unemployment Insurance = 0.75%

Employer Taxes & Contributions

Taxes for employers in Serbia are broken down as such:

• Pension = 10%
• Health Insurance = 5.15%

Annual Leave (Vacation)

Employees in Serbia are entitled to 20 working days of annual leave. Unused days can be carried over to the next year up to 30 June.

Sick Leave

Sick leave in Serbia varies, and can last up to 12 months. Up to 30 days, sick leave is paid at 65% of the salary. After 30 days, the pay varies.

Maternity Leave

In Serbia, expecting mothers are entitled to up a year for the first and second child, and 2 years for the third and fourth child. Only 28 days need to be taken before the birth of the child, and the rest after.

In the first 30 days of leave, employees are paid at 100% of their salary by the employer. After that, Social Security pays the salary as an average of the last 18 months' salary.

Paternity Leave

The length of paternity leave depends on the employer, but the duration of the leave is typically 5 working days.

Other Leave

Employees can receive paid leave for "slava", which is 1 day per year in celebration of their family saint patron's holiday.

Employees can take 5 days of leave for their wedding, 2 days for donating blood, and 5 days in case of a close family member's serious illness.

Public Holidays

The following public holidays are observed in Serbia:

• New Year’s Holiday - January 1-2
• Orthodox Christmas - January 7
• Sovereignty Day - February 15-16
• Orthodox Good Friday - Moveable
• Orthodox Easter Monday - Moveable
• Labor Day - May 1-2
• Armistice Day - November 11

‍

Benefits

Statutory Benefits

Employees are entitled to social security benefits which include: Retirement pension; Disability and professional illness insurance; Healthcare; and Unemployment benefits.

Non Statutory Benefits

Employers in Serbia typically offer non-statutory benefits which include:

• Private insurance;
• Private pension plans;
• Group life insurance.

Termination Process

There is no at-will termination in Serbia and dismissals must be done for just cause such as resignation, misconduct, or other work offenses.

Notice Period

The notice period for an employee-initiated contract termination is between 15 and 30 days, and the notice for termination by the employer because of an employee’s sub-performance is between 8 and 30 days. The length of notice is usually agreed upon in the employment contract.

Severance Pay

Any employees that are terminated due to redundancy can receive severance pay, which is normally calculated as 1/3 of the employee's monthly salary for each year of service.

There is no statutory requirement to pay a 13th or the 14th month salary in Serbia. Bonuses are given to employees at the employer level, and they vary in form.