Serbia at a glance
Taxes in Serbia
Employer Contributions
| Contribution Type | Rate |
|---|---|
| Total employer tax | 15.15% |
| Pension and disability insurance | 10% |
| Health insurance | 5.15% |
| Contribution Type | Rate |
|---|---|
| Total employer tax | 15.15% |
| Pension and disability insurance | 10% |
| Health insurance | 5.15% |
| Contribution Type | Rate |
|---|---|
| Total employee social security | 19.9% |
| Pension and disability insurance | 14% |
| Health insurance | 5.15% |
| Unemployment insurance | 0.75% |
| Income tax (flat rate) | 10% |
A monthly non-taxable allowance of RSD 34,221 is deducted from gross salary before income tax applies.
Employer of Record in Serbia
How Remote& EOR Works
Remote& acts as the legal employer of your Serbian workers — handling payroll, tax filings, statutory benefits, and employment contracts while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files contributions, administers benefits, ensures legal compliance |
| Employee | Works for your company under a locally compliant Serbian contract |
Ask Remi:
"Hire a UI/UX designer in Serbia — RSD 200,000/month, starting next month" Remi handles everything: contract, PIO/RFZO registration, payroll setup, and benefits enrollment.
Benefits in Serbia
- Public health insurance: Mandatory coverage overseen by the Republic Health Insurance Fund (RFZO)
- Socijalno Osiguranje: Covers healthcare, pension, family support, and unemployment benefits
- Private health insurance top-up
- Transportation allowance
- Meal vouchers or subsidies
- Performance bonuses
- Company car or mobility allowance
- Mobile phone and laptop
- Fitness and wellness programs
- Extra paid leave days
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 20 days + option of 5 additional days + public holidays |
| Sick Leave | 30 days covered by employer; additional days covered by RFZO |
| Maternity Leave | 12 months paid (minimum 28 days before birth) |
| Parental Leave | 5 working days |
Employment conditions
Probation
Maximum 6 months from the start of employment.
Business Transfer
Under Article 147 of Serbia's Labour Law, employees automatically transfer to the new employer in business transfers. No new contracts are required, and the new employer must apply previous terms and internal regulations for at least one year.
Employee Rights & Protections
Serbian workers are entitled to: written employment contract, health and safety protections, union membership, anti-discrimination protection, remote work rights, social security and retirement coverage, severance pay, harassment protection, and personal data protection.
Payments
End of employment in Serbia
Employment may be terminated by: mutual agreement, notice by either party, fixed-term contract expiry, employee death, or legally prescribed circumstances. Terminations based on poor performance or redundancy require following prescribed legal procedures to avoid disputes and penalties.
Frequently asked questions
Four approaches: run payroll from HQ (not legally sustainable long-term); use contractors (non-compliant for full-time exclusive workers); establish a local d.o.o. entity (expensive and complex); or partner with Remote& as Employer of Record for the fastest compliant path without a local company.