Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Serbian Dinar
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in


, particularly if you don't have established local relationships. You can hire employees in


effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Serbia, officially the Republic of Serbia, is a country in Central and Southeast Europe that is located in the southern Pannonian Plain and the central Balkans. It shares borders with Hungary to the north, Romania to the northeast, Bulgaria to the southeast, North Macedonia to the south, Croatia and Bosnia and Herzegovina to the west, and Montenegro to the southwest, as well as a contested frontier with Albania via Kosovo. Serbia's capital and largest city, Belgrade, has a population of about 7 million people. The area of modern-day Serbia has been continuously inhabited since the Paleolithic Age, but it was subjected to Slavic migrations in the 6th century, resulting in the formation of several regional states in the early Middle Ages, some of which were recognized as tributaries to the Byzantine, Frankish, and Hungarian kingdoms. The Holy See and Constantinople recognized the Serbian Kingdom in 1217, and the Serbian Empire, which lasted just a few years, reached its territorial apex in 1346. The Ottomans conquered all of modern-day Serbia by the mid-16th century; their rule was sometimes disrupted by the Habsburg Empire, which began expanding into Central Serbia at the end of the 17th century while retaining a foothold in Vojvodina. The Serbian Revolution created the nation-state as the region's first constitutional monarchy in the early nineteenth century, and it subsequently extended its territory. Following the unification of the former Habsburg crownland of Vojvodina with Serbia following World War I, the country co-founded Yugoslavia with other South Slavic nations, which existed in various political formations until the Yugoslav Wars of the 1990s. Serbia formed a union with Montenegro during the disintegration of Yugoslavia, which was peacefully dissolved in 2006, restoring Serbia's independence as a sovereign state for the first time since 1918. The Kosovo parliament unilaterally proclaimed independence in 2008, eliciting mixed reactions from the international community. Serbia is a developing nation with a middle-income economy that ranks 64th on the Human Development Index. It is a unitary parliamentary constitutional republic that is a member of the United Nations, Council of Europe, OSCE, Partnership for Peace, BSEC, CEFTA, AIIB, and is in the process of joining the World Trade Organization. The country has been negotiating its EU membership since 2014, with the aim of entering the EU by 2025. Serbia has officially maintained its military neutrality stance. Citizens have access to universal health care and free primary and secondary education.

04. Public holidays

05. Types of leave

Paid time off

Each year, employees are given 20 days of paid vacation.

Public holidays

Serbia recognizes twelve public holidays.

Sick days

Paid sick leave can be used for as long as you need it, as long as you have a doctor's certificate, which you must file with the health insurance administration. Employees receive 65 percent of their income for sickness/injury not linked to work for the first 30 days, and 100 percent if it is connected to work. Payment is made by the state, not the employer, after 30 days.

Maternity leave

The combined pregnancy and maternity leave is 365 days long.

Paternity leave

There is no particular paternity leave, however the father may take maternity leave if the mother is unable to care for the infant during that time.

Parental leave

Other leave

06. Employment termination

Termination process

Employers must provide a written explanation and at least eight days' notice if the termination is for cause. The explanation must include the cause for dismissal, supporting documentation, and a chance for the employee to react. Failure to follow the procedure may result in the dismissal being declared invalid by a court.

Notice period

Employers must provide at least eight days notice. Employees who wish to terminate their employment must give 15 days notice. A 30-day notice period is required in the event of layoffs.

Severance pay

Severance pay of at least 1/3 of regular salary for each year worked is required in the event of layoffs.

Probation period

In Serbia, probationary periods should not exceed six months, during which time either party may terminate the relationship with five days' notice.

07. Working hours


In Serbia, the standard work week is 40 hours spread over five days and cannot be less than 36 hours per week. Workers in particularly difficult or dangerous jobs may have their hours reduced to 30 per week, even after appropriate safety measures are implemented. Employees may be required to work overtime only in exceptional circumstances.


Overtime hours are limited to four per day and eight per week, and employees are compensated at 126 percent of their standard hourly rate for overtime hours worked. On a public holiday, employees are compensated at 110% of their standard rate. Employers are required to keep track of all overtime hours worked.

Employees who work between 10 p.m. and 6 a.m. on a regular basis are compensated at 126 percent of the standard hourly rate. A worker must consent to working nights for a period of more than one week.

Pregnant women are not permitted to work overtime or at night during the first 32 weeks of pregnancy unless their doctor determines that there is a risk to their health or the health of their baby, and they are not permitted to work overtime or at night during the final eight weeks.

08. Minimum wage


Serbia's hourly minimum wage is 183.93 Serbian dinars (RSD) as of 2021.

09. Employee benefits


Serbia has a universal healthcare system. There is the option of purchasing private health insurance.

Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in


to hire a team takes time, money, and effort. The labor law in


has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into


simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in


give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in


via our Employer of Record / PEO solution.

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