Serbia

• New Year’s Day
• New Year Holiday
• Orthodox Christmas
• Sovereignty Day of Serbia
• Holiday
• Good Friday (Orthodox)
• Easter Monday (Orthodox)
• Labour Day
• Labour Day Holiday
• Armistice Day.

Working Hours

The standard workweek in Serbia is 40 hours.

Minimum Wage

In Serbia, the minimum wage is RSD 40,020 per month.

Employee Tax

Monthly income	Tax rate
Up to RSD 21,712	0%
More than RSD 21,712	10%
Pension and disability insurance contribution (minimum monthly tax base is RSD 40,143 and RSD 573,470 for the maximum monthly tax base)	10%
Health insurance contribution	5.15%
Unemployment insurance contribution	0.75%
Social security contributions	35.05%

Bonuses

Many employers in Serbia build a performance-based bonus into an employee’s salary. It is also common for employers to provide private healthcare plans for employees and their families.

In Serbia, contracts must be in writing and in Serbian. There are 13 mandatory elements that must be included in employment agreements, including the following:

• Name and registered seat of the employer.
• Name and place of residence of the employee.
• Work post and job description.
• Place of work.
• Type of employment.
• Basic salary on the date of conclusion of the employment agreement.

Fixed-term contracts are allowed up to two years, or 36 months if the employing company has been registered for less than one year.

The Labour Law regulates remote work and work from home employment relations. In addition to mandatory terms of an employment contract, the following must be included in a remote or work from home employment contract:

• Working hours.
• Manner of supervision of work and quality of work that employee should produce.
• Work equipment which the employee is entitled to, or usage of employee’s own equipment and compensation for the same.
• Compensation for other costs of work incurred by the employee.
• Any other relevant rights and obligations.

An employee working remotely or from home is entitled to the same remuneration as an employee who performs the same work within the employer’s premises.

The employer is prohibited from issuing volume of work and deadlines for completion of tasks that prevent the employee from using the legally mandated rest periods.

Annual Leave

Employees in Serbia are entitled to 20 days paid annual leave per year. This may be increased as a result of their:

• Work contribution
• Work conditions
• Working experience
• Level of education
• Other criteria determined by a general act or employment contract

Sick Leave

In Serbia, an employee is entitled to paid sick leave of up to 30 days. Sick leave is paid at 65% of the average salary of the previous 12 months if illness or injury was not inflicted at work, or 100% if inability is caused by an occupational illness or injury.

After three days, an employee is required to submit a doctor’s note.

For sick leave longer than 30 days, the National Health Insurance Fund will be charged (the employer has the right to request a refund of paid salaries).

Parental Leave

In Serbia, maternity leave starts 28-45 days before the due date and lasts for three months after the birth.

The employee is entitled to maternity leave and nursing leave for up to of 365 days for the first and the second child, and two years for a third and a fourth child.

The father can use the mother's maternity leave in certain specific cases (for example, if the mother abandons the child, dies or cannot use her maternity leave for a justified reason).

Termination Process

In Serbia, employment can be terminated in one of the following ways:

• Contract expiry.
• Retirement.
• Mutual consent.
• Termination by employer or employee.
• At the request of the parents or guardian of an employee younger than age 15.
• Other ways stipulated by law or employment agreement.

Written notice of termination of employment must be given no fewer than 15 days prior to the day of termination.

Severance Pay

In the event of redundancy, a severance payment is a prerequisite for the termination of employment and a mandatory condition for the validity of the decision on termination. There are no mandatory severance payments in other cases of termination.

On retirement, employees have the right to a severance payment equivalent to two average salaries in Serbia.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.