Serbia
Run your business seamlessly with NH Consulting as we help you go beyond borders to manage your international payroll and hire new talent in Serbia.
Employer of record in Serbia
You may opt for addressing to an employer of record in case if you are in a hurry or don’t have enough local expertise when expanding to or employing workers in Serbia to achieve your global growth objectives.
With the help of an international PEO, or an employer of record, you will be able to hire and onboard workers in Serbia (often as quickly as in two weeks) and get free from the cost and risk of establishing a local entity.
Your international employment needs, as well as the processes of hiring, employment, payroll and meeting the requirements for workers in Serbia can be managed by our local HR experts.
Hiring in Serbia
You need to incorporate your business in Serbia to hire employees, or you can address to an Employer of Record in Serbia. Hiring companies in Serbia or online resources like job portals will help you ensure that you get the right talent for your organization.
The legal, bureaucratic, and administrative hassles can make the processes of incorporation last long, but the hiring and talent recruitment process in Serbia can be facilitated by an EOR or PEO like NH Consulting.
Employment in Serbia
Serbian labor laws and various statutory obligations expected from employers must be clear for foreign companies hiring employees in Serbia. Collaboration with an EOR in Serbia will let you concentrate on your core expertise to achieve business results. An optimized EOR Solution will make your expansion cost-effective and your business in the country successful.
The full-time working hours in Serbia are 40 hours a week and cannot be less than 36 hours a week except for special cases, according to Article 51. A working week consists of five eight-hour working days, according to Article 55. It needs to inform employees about all changes in work schedule and timing at least five days before the intended change, according to Article 56.
According to Article 53, employees can be asked to work overtime in a force majeure or in cases where it is essential to complete unplanned work, but not more than eight hours weekly
It’s illegal to make employees work more than 12 hours daily.
According to Article 62, they term all work performed between 22:00 hours to 06:00 hours as night-time work.
Safety measures during night-time work need to be consulted about with Trade Unions.
Leave and rest periods are covered by Articles 64 to 78. A rest period of 30 minutes must be given to employees working for six consecutive hours, 45 minutes of rest must be provided to employees working for more than 10 hours and 15 minutes of rest to employees working between four to six hours. 12 hours of rest in a day are necessary for all employees. It is mandatory to give a weekly rest of 24 straight hours to all employees, usually on Sunday. 20 workdays of annual leave in one or two parts must be provided to all employees every year.
Paid leaves: Employees get a total of five days of paid leave during a calendar year. The death of a family member, childbirth, marriage, and the severe illness of an immediate family member are included in the conditions when the employee gets paid leave.
Even when an employee is absent from work to join the military, is assigned to work abroad, is elected, or is sentenced to imprisonment the terms of employment remain operational.
Articles 80, 81, and 82 mention general protection clauses. First of all, employees must work in a safe and healthy work environment. Article 83 mentions personal Data Protection. Employers must not inspect employees’ papers containing their personal data without permission or reveal employee data to third parties. Article 84 mentions protection of youth. It’s forbidden to involve employees under the age of 18 years in physical labor, at sites exposed to harmful radiation, in underground work, in underwater work, or work at a greater height and altitude. According to Article 87, such employees cannot work for more than 35 hours every week.
Articles 89 to 95 cover the provisions for these benefits. It’s illegal to make pregnant or breastfeeding women employees work in harmful conditions for the mother and child or work overtime or night shifts. Paid leaves for medical examinations must be provided to such employees, as well as leave of absence of 365 days to pregnant women, after childbirth, or while nursing a child. A woman can avail maternity leave 28 to 45 days before childbirth and end it three months after the child’s birth.
It is possible for one of the parents of a child under five years of age or with psycho-physical impairment to be absent from work or work half-days.
Provisions relating to the salary and wages of an employee are mentioned in Articles 111 to 117. The minimum labor price is decided by the Social and Economic Council and then published in the Official Herald of the Republic of Serbia. It is mandatorily for the employers to give a pay statement to the employees every month.
Retirement gratuity, funeral expenses in the event of the death of a family member, and damage compensation in case of an injury at the workplace must be provided to employees besides their salary.
Employment contracts in Serbia
An employment contract in Serbia is the key to differentiating between a contractor or an employee according to the labor laws. They prepare the employment agreement in Serbia in compliance with the Labor Act and details about the salary, benefits, compensation, leaves and other details should be included in it.
The service agreement is the most commonly used of contractual relationships mentioned in the labor law. Contractors can be hired by the employer under a service agreement only for activities that do not fall under the purview of their business activity. The agreement terms can be stipulated by the contractors, except for the minimum guarantees for employees. The terms of a service agreement are predominated by the Obligations Act.
Both the types of agreement – employment and service – differ in terms of taxation and social security obligations.
It can be a tedious task for international companies with no local liaison offices to draw out detailed employment contracts that are complete in all respects and comply with the employment contract law in Serbia. Templates of employment contracts are also included in NH Consulting comprehensive EOR solution for Serbia in order to help you hire and onboard the employees compliantly. NH Consulting experts are ready to tell you more about hiring the best Serbian talent on both a contractual and full-time basis.
Advantages of Hiring Full-time Employees
These are loyalty, knowledge and legal freedom. Firstly, working exclusively for your company makes full-time employees loyal and committed to your organization. Dependence of their individual success on the performance of your firm makes them work harder.
Secondly, the organization keeps a full-time employee’s skills and knowledge.
Thirdly, the terms of the contract and entitlements are determined by the contract at the moment of hiring full-time employees and can’t be changed without mutual decision of the both parties.
International companies that have no local liaison offices can have difficulties with drawing out detailed employment contracts that are complete in all respects and comply with the employment contract law in Serbia, but templates of employment contracts assuring a compliant hiring and onboarding of the employees are included in NH Consulting comprehensive EOR solution for Serbia. NH Consulting experts can give you more information about hiring the best Serbia talent on both a contractual and full-time basis.
Payroll & Taxes in Serbia
An employment contract in Serbia is the key to differentiating between a contractor or an employee according to the labor laws. They prepare the employment agreement in Serbia in compliance with the Labor Act and details about the salary, benefits, compensation, leaves and other details should be included in it.
The service agreement is the most commonly used of contractual relationships mentioned in the labor law. Contractors can be hired by the employer under a service agreement only for activities that do not fall under the purview of their business activity. The agreement terms can be stipulated by the contractors, except for the minimum guarantees for employees. The terms of a service agreement are predominated by the Obligations Act.
Both the types of agreement – employment and service – differ in terms of taxation and social security obligations.
It can be a tedious task for international companies with no local liaison offices to draw out detailed employment contracts that are complete in all respects and comply with the employment contract law in Serbia. Templates of employment contracts are also included in NH Consulting comprehensive EOR solution for Serbia in order to help you hire and onboard the employees compliantly. NH Consulting experts are ready to tell you more about hiring the best Serbian talent on both a contractual and full-time basis.
In-depth knowledge of the local policies, regulations as well as several risks and liabilities is required for setting up payroll and taxes in Serbia. NH Consulting Serbia can make the entire process straightforward and legally compliant and ease your resources.
Serbia payroll tax rates are divided in three categories: health insurance (employer 5.15%, employee 5.15%), unemployment insurance (employer 0.75%) and pension & disability (employer 11.5%, employee 14%).
The employee’s income tax is deducted by employers from the payroll. They tax natives of Serbia on incomes that they earned across the world, while they tax foreigners for their earnings in Serbia. The Personal Income The starting rate for taxing is 10% for employees earning RSD 457,012,800. They tax at 25% all employees earning more than this amount.
Bonuses are not required by the legislation, but every year a 0.4 percent salary boost is provided to Serbians.
Termination & Probation in Serbia
Probationary Period in Serbia
Probationary Period in Serbia is covered in Article 36 of the Labor Law. The standard probation period should be mentioned in the employment contract in Serbia. Usually, it lasts for a maximum period of six months.
Termination of employment Serbia
Termination of employment is talked about in Articles 175 to 177.
The expiry of the contract term, the reaching by the employee the age of 65 years, mutual agreement between employer and employee, the cancellation of the contract, the request of a parent or a guardian of an employee under 18 years old or the death of the employee can be the reasons for termination of an employer-employee relationship.
You can talk to NH Consulting experts to ensure that your expansion endeavors adhere to the laws regarding probation and termination in Serbia.
EOR Solution in Serbia
New businesses can get an incomparably agile and swift help from NH Consulting EOR solution with traversing the difficult and complex HR landscape in Serbia. A business entity that works on your behalf and handles all HR functions end-to-end is called an Employer of Record/EOR. Hiring, onboarding, payroll, taxation, compensation, benefits, and compliance with local employment laws are included in it. So, collaboration with an employer of record service in Serbia is the best solution if you plan to hire local or foreign workers in this country.
All aspects of HR services including work visas and work permits, hiring, payroll, salaries, benefits, payroll compliances, preparing employment contracts, termination, severance pay, and many others are covered by NH Consulting, one of the top Employer of Record companies in Serbia. Your hire-to-retire services can be accomplished by this platform acting as a single central tool.
Some reasons why you should work with us:
- Active in Eurasia since 2001
- Dutch owned and Dutch managed
- We speak English, German, Dutch
- Group companies in Kazakhstan, Serbia, Georgia, Ukraine
- Our specialists understand very well the local requirements and the international standards
- Our staff is flexible and customer-oriented
- NH Consulting will consult you and offer you the best solution according to your needs
- We will provide you with all necessary assistance and support through our local offices
- Our staff is friendly and will help you to solve your challenges with pleasure!
We are trusted by international companies since 2001
Please describe in detail which service you are interested in. We are here to support you!
You can place an inquiry through info@nh-consulting-services.com to receive an initial consultation.