Serbia offers a fast-growing, cost-competitive tech and services workforce outside the EU but close to it. All-in employer cost runs around 1.16x the gross salary. Here is what to know before your first Serbian hire.
Employment runs under the Labour Law, with written contracts and mandatory social contributions split between employer and employee. Many IT professionals work as flat-rate entrepreneurs, but genuine employment relationships must be formalised.
The minimum is set as an hourly rate, giving roughly RSD 47,000 or more per month in 2024*, revised annually.
Monthly payroll. There is no statutory 13th salary; bonuses are contractual.
There are several paid public holidays a year, some observed over two days.
A written contract is required. Probation is up to six months.
Employer social contributions add about 15.15% on top of gross salary across pension and health, with the employee paying a larger share.
Serbia splits social contributions between employer and employee, with the employee carrying the larger portion, plus a flat income tax.
Employees pay their contribution share plus a flat 10% income tax above a non-taxable amount, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
A statutory minimum of 20 working days a year, with extra days by criteria set in the contract or agreement.
Maternity and childcare leave together run up to a year (longer for a third child), funded by the state.
The employer pays the first 30 days of illness, after which the health fund takes over.
Paid leave is provided for personal and family circumstances under the Labour Law.
Termination requires a lawful ground and a documented process; notice applies where the employee is at fault or underperforming.
Statutory severance on redundancy is at least a third of a month's pay per year of service.
Up to six months, with a shorter five-day notice during it.
A flat-rate entrepreneur or contractor working like an employee can be reclassified under 'independence test' rules, with back contributions and tax.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Serbian employment contract, payroll, and social contributions, handled. One invoice, flat $399 per month.