Company owners can opt for payroll services in Serbia and collaborate with one of our specialists. Payroll in Serbia involves the formalities and procedures for calculating salaries and distributing them in the company to employees. In the following lines, you will be able to discover information about Serbian payroll taxes and the procedures involved in this respect, with the mention that you can have the support of our experts in the field.
Table of Contents
What does payroll in Serbia entail?
As mentioned at the beginning of this article, payroll in Serbia involves a series of procedures, with the help of which salaries can be calculated and distributed in the owned company. Here is some information in this regard:
- • Each salary is subject to social contributions, and income tax, paid by the employee and the employer.
- • Working hours will be calculated, which normally do not exceed 40 per week, for a full-time contract.
- • With the help of dedicated software and platforms, payroll specialists in Serbia create payslips for each individual employee.
- • Once the payroll documents are accepted, the respective incomes are distributed to the employees’ accounts.
According to the Employment Law in Serbia, salaries are paid in accounts to employees with employment contracts in the respective companies, cash payment being prohibited. Moreover, salary payments are made either weekly, bimonthly, or monthly, depending on the internal regulations of the respective company. You can discuss more about the Serbian payroll taxes with one of our accountants in Serbia.
Serbian payroll taxes
Social contributions are important and represent the taxes to be paid by both the employee and the employer. In Serbia, the following social contributions are paid:
- • health insurance – 14% employee, 11.5% employer.
- • pension and disability insurance – 5.15% employee and employer.
- • unemployment contribution – 0.75% only paid by the employee.
- • as for personal income tax in Serbia, it is set at 10% and calculated on the gross amount.
We recommend that you discuss all aspects related to Serbian payroll taxes with one of our accountants. You can also benefit from payroll services in Serbia for the company you own.
Employment procedure in Serbia
Being employed in Serbia requires the conclusion of an employment contract with the employer, respectively the company interested in personnel. Thus, the employment contract, full-time or part-time, must contain the following information:
- • type of activity and hours worked per week.
- • the place where the activities are carried out, either at the office or outside it.
- • the rules of discipline at the workplace, the way in which a contract can be concluded.
- • information about remuneration, medical leave, maternity leave, etc.
Such a contract is signed by both parties, and it must be registered with the relevant labor authorities. We mention that in the case of foreign citizens, the employment contract is made only after a work permit is issued in Serbia, a matter where our local specialists can provide support.
Statistical data about employment in Serbia
The labor market in Serbia is quite competitive, especially since the taxes are quite low compared to other countries in Europe. Here are some statistical data about employment in Serbia, mentioning before that you can benefit from payroll services in Serbia:
- • According to Stat.gov.rs, there were over 2,888,700 employees in Serbia at the end of the 4th quarter of 2022.
- • The same data show that the unemployment rate was approximately 9.2%.
We invite you to learn more about payroll in Serbia from our specialists. You can contact us by phone or online whenever you want to open a business in Serbia.