Hiring employees in Serbia means following local labor laws, tax regulations, and HR policies. Non-compliance can lead to penalties—so here’s what you need to know.
- Employment Contracts Serbia mandates written contracts with specific terms (e.g., salary, position, hours). Probation and notice periods are regulated by law.
- Payroll Taxes & Contributions Employers must withhold:
- Income tax (~10%)
- Pension & disability (14%)
- Health insurance (~5.15%)
- Unemployment contributions
- Working Hours and Overtime Standard workweek: 40 hours. Overtime is regulated and must be compensated.
- Leave & Benefits Serbian employees are entitled to:
- 20+ days annual leave
- Paid sick leave
- Maternity/paternity leave
- Common Compliance Pitfalls
- Misclassifying employees
- Delayed tax payments
- Using expired employment templates
Conclusion Outsourcing payroll and HR to a partner like ComplyHire ensures full compliance and peace of mind.