Employer of Record in Serbia

An Employer of Record (EOR) in Serbia is a company that legally employs workers on your behalf. This means you can hire talent in Serbia without setting up a local entity. An EOR handles all the legal and HR tasks that come with employment. This includes payroll, taxes, benefits, and compliance with Serbian labor laws. For companies looking to expand into Serbia, an EOR like Rivermate simplifies the process, making it faster and more efficient to hire employees.

How an Employer of Record (EOR) Works in Serbia

Using an EOR in Serbia follows a straightforward process. You find the talent, and the EOR takes care of the rest.

1. You Find the Candidate. You recruit and select the best person for the job.
2. The EOR Hires Them. The EOR legally hires the employee in Serbia under their own local entity. They prepare a compliant employment contract.
3. Onboarding Begins. The EOR manages the entire onboarding process. This includes setting up payroll and enrolling the employee in mandatory social security and health insurance programs.
4. Day-to-Day Management. You manage the employee's daily tasks and responsibilities. The EOR handles all HR administrative duties in the background.
5. Payroll and Compliance. The EOR processes payroll, withholds taxes, and makes social security contributions according to Serbian law. They ensure you remain compliant with all local labor regulations.

Why use an Employer of Record in Serbia

An EOR provides a simple and secure way to build a team in Serbia. It removes the major legal and administrative hurdles of international hiring. This lets you focus on growing your business and managing your team.

• Enter the Market Faster. You can hire employees and start operations in days, not months. Setting up a legal entity in Serbia can be a long and complicated process.
• Ensure Full Compliance. Serbian labor law has specific rules for contracts, working hours, and termination. An EOR understands these laws and ensures you follow them. This reduces your risk of legal issues.
• Simplify HR and Payroll. The EOR handles all payroll calculations, tax withholdings, and payments to local authorities. This saves you time and reduces administrative work.
• Offer Competitive Benefits. An EOR can provide your employees with access to local benefits packages, including private health insurance. This helps you attract and retain top talent.
• Save Money. You avoid the high costs associated with establishing a legal entity, such as legal fees, registration costs, and opening a local bank account.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Serbia includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Serbia.

Hiring in Serbia gives you access to a skilled and cost-effective workforce. The country's location in Southeast Europe also provides a strategic advantage for expanding into new markets. Serbian professionals often have a high proficiency in English, which simplifies communication for international teams.

Employment contracts & must-have clauses

When you hire an employee in Serbia, you must provide a written employment contract. This is the foundation of your working relationship. The contract must be signed before the employee starts work. Keep it clear and straightforward.

Your employment contract must include these key details:

• Employer and Employee Information: Full legal name and address of your company and the employee's name and residence.
• Job Details: The job title and a description of the work.
• Place of Work: Where the employee will be based.
• Start Date: The official first day of employment.
• Contract Type: State whether it is for an indefinite period or a fixed term.
• Working Hours: The daily and weekly work schedule.
• Salary: The gross salary amount and payment schedule.

Probation periods

You can include a probation period in the employment contract to assess a new hire's skills and fit. This trial period is optional but common.

• Maximum Duration: A probation period cannot last longer than six months.
• Termination: During probation, either you or the employee can terminate the contract with a minimum of five working days' notice.

Working hours & overtime

The standard workweek in Serbia is 40 hours, typically eight hours per day over five days.

Overtime is regulated to protect employees.

• Limits: Overtime is limited to a maximum of eight hours per week and four hours per day.
• Compensation: You must pay employees a premium for overtime work, which is at least 26% above their regular wage.

Here is a simple breakdown of pay for different types of work:

Public & regional holidays

Your employees in Serbia are entitled to paid time off for public holidays. Here are the non-working public holidays for 2025:

Hiring contractors in Serbia

Hiring independent contractors in Serbia can be a flexible way to access specialized skills without the overhead of full-time employment. This approach is ideal for project-based work.

However, it is crucial to classify workers correctly. Misclassifying an employee as a contractor can lead to fines and penalties. Serbian law looks at several factors to determine the nature of the working relationship, such as the level of control you have over the worker and whether you provide their equipment.

An Employer of Record (EOR) helps you avoid these risks. We handle the complexities of local labor laws to ensure you are compliant. An EOR allows you to hire talent in Serbia without setting up a local legal entity. We take care of contracts, payroll, and benefits, so you can focus on growing your business.

Navigating compensation and payroll in Serbia means understanding a few key rules. You need to follow local laws for everything from how often you pay your team to how much tax you withhold. All employment contracts must be in Serbian and salaries must be paid in the local currency, the Serbian dinar. You are required to give your employees a payslip, either printed or digital, that breaks down their pay and any deductions.

Payroll cycles & wage structure

In Serbia, you must pay your employees at least once a month. Payments are made via bank transfer in Serbian dinars. The salary you agree upon with your employee is a gross amount, which includes their net pay plus the taxes and contributions paid on their behalf. While a 13th-month bonus isn't required, if you promise one, you must pay it by the end of the financial year.

Overtime & minimums

The standard work week in Serbia is 40 hours. Anything beyond that is overtime and cannot be more than four hours a day or eight hours a week. For overtime work, you must pay at least 26% more than the employee's regular wage. Work on public holidays comes with a premium of at least 110% of the regular rate. The government sets a minimum wage that you must meet.

Employer taxes and contributions

As an employer in Serbia, you are responsible for withholding and paying taxes and social security contributions for your employees. These contributions cover pensions, health insurance, and unemployment.

Employee taxes and deductions

Employees also contribute to social security from their gross salary. The personal income tax is a flat rate.

In Serbia, the benefits and leave system is a mix of legal requirements and extra perks employers offer. The law sets the minimum standards for time off and other benefits to protect you. Many companies, however, choose to offer more than the basics to attract and keep the best employees. This means you can often find competitive packages that go beyond the legal minimums.

Statutory leave

Serbian labor law provides several types of paid leave.

• Annual Leave: You are entitled to a minimum of 20 paid vacation days each year. This can be increased based on your time with the company, your job, and other factors defined in your employment contract.
• Sick Leave: If you are sick or injured, you can take paid sick leave. For the first 30 days, your employer pays 65% of your average salary from the previous 12 months. If the illness or injury is work-related, you receive 100% of your salary. After 30 days, the state’s Health Insurance Fund takes over the payments.
• Maternity Leave: Pregnant employees get a generous leave package. It starts 28 to 45 days before the due date and continues for a total of one year for the first and second child. For a third or subsequent child, this extends to two years.
• Paternity Leave: Fathers are entitled to seven days of paid paternity leave.
• Other Paid Leave: You can also take paid time off for specific personal events. This includes five days for marriage or a family bereavement and two days for donating blood.

Public holidays & regional holidays

Serbia observes several public holidays throughout the year. If a holiday falls on a Sunday, the day off is moved to the next working day.

Typical supplemental benefits

To stay competitive, many employers in Serbia offer benefits that go beyond the legal requirements.

How an EOR can help with setting up benefits

Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) simplifies this process for you. An EOR acts as the legal employer for your team in Serbia.

This means they handle all the administrative and legal tasks related to employment. An EOR will:

• Ensure your benefits package complies with all Serbian labor laws.
• Manage payroll and social security contributions.
• Administer both statutory and supplemental benefits for your employees.
• Help you create a competitive benefits package to attract top talent.

Using an EOR allows you to focus on your business goals while they take care of the complexities of local employment laws and benefits administration.

Ending employment in Serbia involves a structured process to protect both you and your employees. You must follow specific legal requirements for termination to be lawful. This means providing written notices, clearly stating the reasons for termination, and respecting statutory notice periods and severance obligations. The process is designed to be fair and transparent.

Notice periods

When you terminate an employment contract in Serbia, you may need to provide a notice period. This gives your employee time to find a new job. The length of the notice period depends on the reason for termination.

• Inability to perform work: If you terminate an employee because they cannot perform their job duties, you must provide a notice period of at least eight days and up to 30 days.
• Probationary period: During a probation period, you can terminate the contract with a minimum of five working days' notice.
• Violation of work duties: If an employee violates their work duties, you must first issue a written warning. The employee then has eight days to respond to this warning.

The notice period starts the day after you deliver the written termination decision to the employee.

Severance pay

You are required to pay severance in certain situations. The most common reason for mandatory severance is redundancy, for example, when you terminate an employee due to technological, economic, or organizational changes.

The minimum amount of severance pay is calculated based on the employee's years of service with your company. It is the sum of one-third of the employee's salary for each full year of employment. An employment contract or collective agreement can specify a higher amount, but not a lower one.

You are also required to pay severance when an employee retires.

How Rivermate handles compliant exits

When you use an Employer of Record like Rivermate, we manage the entire offboarding process for you. We make sure every termination is handled in full compliance with Serbian labor law.

Here’s how we simplify the process:

• Legal expertise: We navigate the complexities of Serbian labor law to ensure every step is correct.
• Documentation: We prepare and handle all necessary documents, including written warnings and termination decisions.
• Calculations: We accurately calculate notice periods and any required severance pay.
• Communication: We can act as a point of contact to ensure clear and professional communication with the departing employee.

By managing the process, we help you avoid legal risks and ensure a smooth and respectful exit for your employees.

Working in Serbia requires navigating a specific visa and work permit process. If you're not a Serbian citizen, you'll need the right documents to legally live and work in the country. The main route involves getting a long-stay visa, known as a Type D visa, before you travel. Once in Serbia, you must apply for a temporary residence permit and a work permit. These applications are often handled together.

Employment visas & sponsorship realities

An Employer of Record (EOR) can be a practical way to hire employees in Serbia without setting up your own legal entity. An EOR can sponsor the necessary work permits for foreign employees. This is a common path for companies hiring full-time foreign talent.

Here's what you need to know about the process:

• EOR Sponsorship: An EOR with a registered legal entity in Serbia can issue a compliant job offer and sponsor a foreign employee's work permit.
• Type D Visa: This long-stay visa is for work purposes and allows you to stay in Serbia for up to 180 days. It's the first step to getting your temporary residence.
• Temporary Residence Permit: If you plan to stay longer than 180 days, you'll need to apply for a temporary residence permit after your Type D visa expires.
• Work Permit: This is usually tied to your employer and a specific job.

While an EOR can sponsor visas, be aware of potential limitations. Some countries have visa quotas that might affect the ability to sponsor a foreign national.

Business travel compliance

For short-term business trips, you may not need a long-stay visa. Many nationalities can enter Serbia without a visa for up to 90 days within a 180-day period.

If you do need a visa for a short business visit, you will apply for a Type C visa. This visa is for activities like:

• Attending business meetings
• Negotiating deals
• Participating in conferences

The Type C visa does not permit long-term employment. To get a business visa, you will generally need an invitation letter from a Serbian company.