Employee Contract

All employment contracts in Serbia must be in writing and should be written in a language that all parties understand. While it is common practice to draw contracts in Serbian, it is not mandatory. As an employer, it is important to have a clear and comprehensive employment contract that outlines the terms and conditions of employment.

Probation Period

The probation period in Serbia is six months. During this time, both the employer and the employee have the opportunity to evaluate whether the employment relationship is a good fit.

Payroll Cycle

In Serbia, payroll is typically paid once a month. Employers should ensure that they have a reliable payroll system in place to ensure accurate and timely payment of salaries.

Minimum Wage

The minimum wage in Serbia varies depending on the number of working hours. As of 2021, the minimum wage for a month with 160 working hours is RSD 49,399, while the minimum wage for a month with 184 working hours is RSD 57,274.

Overtime Pay

Employees in Serbia are entitled to overtime pay for any additional hours they work. The additional pay rate must not be lower than 26% of their hourly rate.

Employee Benefits

Serbian employees are entitled to a range of benefits, including statutory leaves, social security benefits, unemployment insurance, pension and retirement benefits, disability benefits, and health insurance. Employers should be aware of these benefits and ensure that they are providing them to their employees.

VAT

The standard VAT rate in Serbia is 20%. This should be taken into consideration when budgeting for business expenses.

Termination Process

Termination of employment in Serbia may occur for a variety of reasons, including the expiration of a contract, mutual agreement between employer and employee, or termination by either party. Employers should ensure that they follow the proper procedures when terminating an employee, including providing appropriate notice and severance pay.

Visa and Immigration

Foreign employees in Serbia must obtain a work permit to work in the country. The validity of these permits can range from 3 to 12 months and may be renewed upon expiration. In addition, foreign employees must also apply for a residence permit to legally stay in Serbia for employment purposes.

Conclusion

Hiring in Serbia can be a smooth and successful process with the right knowledge and preparation. By understanding the country's labor laws and regulations, you can ensure that your business is compliant and your employees are well taken care of. Whether you are a local entrepreneur or a foreign company looking to expand in Serbia, the key is to be informed and proactive in your hiring practices.

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