Payroll in Serbia

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 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.

What does payroll in Serbia entail?

Payroll in Serbia involves a series of procedures, with the help of which salaries can be calculated and distributed in the 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, our payroll specialists in Serbia create payslips for each 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.

Duties of a payroll specialist in Serbia

If you want to set up a company in Serbia, you must also consider Serbian payroll services. These can be included in a customized package offered by our Serbian accountants. Our specialist in payroll in Serbia has various responsibilities, and among them we list:

• It deals with the registration of employees in the payroll system. Information about their activities will also be found here.
• A payroll specialist in Serbia must have access to information about: employees salaries, working hours, benefits, taxes, compensations, and more.
• All payroll specialists in Serbia use dedicated platforms for calculating salaries in the company. They must also calculate the related taxes for each employee.
• All documents created by a payroll specialist in Serbia are kept in the company and archived.
• We are at your disposal if you want more information about payroll in Serbia and the procedures involved. You can opt for externalized services of this kind and benefit from personalized offers depending on the size of the company you own.

What is a payslip and what does it contain?

A payslip contains information about an employee’s salary as well as related taxes. This document is drawn up when salaries are calculated, and a payroll specialist in Serbia is in charge of creating and issuing this type of document. The following information can be found on a payslip:

• the name of the employee and the company,
• taxes paid by the employee and the employer,
• hours worked,
• the period worked,
• personal income tax,
• gross salary,
• net salary.

We advise you to contact our specialists if you need payroll services in Serbia. Also, if you want more information about company incorporation in Serbia, do not hesitate to contact us.

Who signs payslips in a company?

Normally, once the payslips are issued, these documents are submitted to the company’s management to be signed. As soon as they are signed, the company starts paying salaries. A payroll specialist in Serbia has at his/her disposal various platforms with the help of which he records the employees, the hours worked, and other such details that help make payslips and distribute salaries in their accounts. Our experts can tell you more about payroll in Serbia and dedicated services.

Serbian payroll taxes and contributions

Social contributions and taxes must be paid by both the employee and the employer:

• 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;
• personal income tax in Serbia 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 hiring 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, and how 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.

Procedures for hiring foreign workers in Serbia

The legislation mentions that foreign employees can work in Serbia after obtaining a work permit. There are also exceptions in this case, for foreigners who do not stay more than 90 days in Serbia in a period of 6 months. This exception applies to representatives of foreign companies, business owners, or members of corporate bodies. Here are some details about work permits in Serbia:

• Citizens with permanent residence in Serbia can obtain personal work permits. Refugees in Serbia can also work with this type of permit.
• Employment permits are also issued for intra-company transfers or for people who have accepted contract-based activities in Serbia. Self-employed and independent professionals must apply for a work permit in Serbia.

The payroll treatment for foreign employees in Serbia can be different from that of local employees, especially in terms of taxes, deductions, and social security contributions:

• Tax residency and taxation: one of the key payroll considerations for foreign workers is determining their tax residency status. If a foreign worker is considered a resident for tax purposes in Serbia, he/she is generally required to pay taxes on his/her worldwide income;
• Social security contributions: foreign workers are typically required to contribute to Serbia’s social security system, which includes: health insurance, pension and disability insurance, and unemployment insurance.

Get support from our professional team of accountants in Serbia in order to successfully complete the process of foreign employment in Serbia and taxation issues.

We specify that the Ministry of Foreign Affairs in Serbia is the authority that issues residence and work permits. It is also important to specify that an employment contract must have the same validity period as the work permit issued in Serbia. We advise you to contact us if you want to hire foreign workers for your company in Serbia. We can take care of payroll for this type of employee. Company owners can opt for payroll services in Serbia and collaborate with one of our specialists.

Foreign workers permits and payroll considerations

The requirements for obtaining a Serbian work permit vary based on the foreign worker’s nationality, the nature of their employment in the specific company, and the length of their stay in Serbia. The most important types of work permits in Serbia are:

• Temporary work permits: foreign workers hired for short-term contracts (usually less than a year) require temporary work permits. The process typically involves an application by the employer, which must demonstrate the need for foreign labor and that the worker possesses the required skills for the job;
• Long-term work permits: these are required for foreign nationals intending to live and work in Serbia for more than a year. These permits may be granted to foreign employees with specialized skills or to those filling roles where there is a shortage of local workers;
• Personal work permits: individuals who have obtained permanent residency in Serbia are eligible for personal work permits, allowing them to work without additional applications or restrictions.

Our company formation specialists in Serbia are at your disposal with support for obtaining a work permit in Serbia and more details about Serbian payroll. Moreover, for more information on payroll taxes and other financial issues, our specialized team of accountants in Serbia can assist you.

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 2,894,900 employees in Serbia at the end of the 4th quarter of 2024.
• The same data show that the unemployment rate for youth was approximately 25.8 %.

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.