Looking for an Employer of Record in Serbia? Here’s what you need to know

Finding top talent in Serbia is just the start. Navigating complex labor laws governing how to manage and pay employees in Serbia is where things get complex.

Many global companies turn to an Employer of Record (EOR) when hiring abroad. However, using an Employer of Record in Serbia may not be applicable.

Instead, companies can use a workforce management platform, such as Payoneer Workforce Management, to streamline talent engagement in Serbia.

Find out more about Payoneer Workforce Management, or keep reading to discover what engaging talent in Serbia involves.

How to hire employees in Serbia

There are three common options for companies looking to engage and pay talent in Serbia:

1. Set up a local entity: This approach involves significant time and effort. It’s most suited to companies looking to establish a long-term presence in Serbia and those willing to take sole responsibility for labor law and compliance.

2. Hire independent contractors or freelancers: This option gives you more flexibility and is particularly useful when hiring talent for short-term projects. However, you need to avoid misclassifying employees as contractors or freelancers to avoid fines and penalties.

3. Workforce management platform: Typically, to engage international talent companies use an Employer of Record, In Serbia this model may not be applicable. However, a workforce management platform allows you to engage local talent without a local entity and provides support with onboarding, management, and local payroll.

A partner like Payoneer Workforce Management can help you onboard talent and set up payroll and localized benefits as per local laws and requirements.

How to onboard employees in Serbia

An effective onboarding process helps Serbian employees get up to speed with company processes, culture, and expectations. It helps them feel like part of the team and means a quicker time-to-productivity.

Typically, onboarding tasks include:

• Payroll and benefits registration: Ensure local candidates are properly added to payroll systems and enrolled in all mandatory benefits as per local employment requirements.
• Equipment delivery and setup: Provide the new employee with the necessary hardware so they can begin their work effectively.
• First‑week orientation: Arrange an introductory session during the new candidate’s initial week to brief them on company policies, onboarding procedures, and the expectations of their role.
• Team and colleague introductions: Schedule time for the local employee to meet their team and connect with colleagues across the wider organization.

Payoneer Workforce Management enables companies to compliantly engage talent across borders through its technology platform.

Pay employees in Serbia

When you pay employees in Serbia, the local currency is the Serbian dinar (RSD). 

Employees are usually paid on the 7^th day of the month, and the minimum wage in Serbia is RSD 371 per hour.

End-of-service benefit

Another consideration when managing Serbia payroll is the end-of-service benefit, known as otpremnina in Serbian.

The benefit amount paid depends on the employee’s length of service and salary. 

The minimum benefit is 1 month’s salary for each year of service, up to 5 years. The maximum benefit is 6 months’ salary for each year of service, up to 30 years.

Income tax

As part of the Serbia payroll process, employers must follow income tax regulations. In Serbia, there are 3 tax bands:

Annual income	Tax rate
Up to RSD 3,268,224	0%
RSD 3,268,224 to RSD 7,438,752	10%
RSD 7,438,752+	15%

Social security

In Serbia, social security is called socijalno osiguranje. It covers healthcare, pension, family support, unemployment, and other social benefits. Both employers and employees contribute to socijalno osiguranje.

Public health insurance

Health insurance is mandatory in Serbia for most residents. Public health insurance is overseen by the National Health Insurance Fund (NHIF).

With Payoneer Workforce Management, you get a single dashboard from which you can manage a global workforce, paying contractors and employees in just a few clicks.

Employment laws in Serbia

When engaging employees in Serbia, it’s important to understand and comply with local labor laws. Here are some of the country’s key employment regulations:

• Working hours: Employees can work up to 40 hours per week.
• Overtime hours: Employees can work up to 8 hours per week and 4 hours per day of overtime in response to a reasonable request by the employer.
• Probation period: In Serbia, the probation period ranges from 15 to 90 days, with 90 days being the norm.
• Notice period during probation: There is no mandatory notice period during probation.

When engaging talent in Serbia, you can get support to stay compliant with local labor laws by using Payoneer Workforce Management’s infrastructure.

Minimum wage in Serbia

As of 2026, the minimum wage in Serbia is RSD 371.00 per hour. 

When engaging talent in Serbia, it’s important to keep track of minimum wage regulations, as they are subject to change.

Employment contracts in Serbia

Employers need to provide Serbian employees with an employment contract. This must be provided before an employee starts work and should set out the terms of employment, including the following:

• Working hours and rest periods
• Leave policies and entitlements
• Salary compensation and other payments
• Working conditions

With Payoneer Workforce Management, you can onboard talent quickly and securely with localized contracts and payroll.

Leave policy in Serbia

Employees in Serbia are entitled to various types of leave, including vacation leave, sick leave, maternity leave, and wedding leave.

Public holidays and vacation time

There are 7 national holidays in Serbia and multiple religious holidays. 

Additionally, employees are entitled to at least 20 days of vacation leave per year. This can be increased to 25 days per year at the employer’s discretion.

Vacation days may be carried over into the following year, and employees must use any unused leave by June 30^th of that year.

Sick leave

Serbian employees are entitled to 30 days of sick leave. From day 31, sick leave payments are covered by the state health fund (RFZO) with medical approval.

Maternity and paternity leave

Mothers are entitled to 12 months of paid maternity leave, with 28 days to be taken before the birth of their child. 

Partners are entitled to 5 working days of paternity leave.

Other leave

Other types of leave in Serbia include compassionate leave and wedding leave. In both cases, employees are entitled to 5 working days of leave.

Work permit in Serbia

Foreign nationals need a work permit to legally work in Serbia. The rules for obtaining a work permit vary by the candidate’s country of origin.

You can check the Serbian government resources for more details.

Background check in Serbia

Before engaging an employee in Serbia, you may choose to run background checks. These can include a criminal check, an employment and education history check, and a social media check.

You may need consent from the employee before you run background checks. You also have to disclose which checks you will be conducting. Always check local regulations before running any pre-employment checks.

Employment termination in Serbia

You can end an employment contract in Serbia in any of the following scenarios:

• Employee resignation
• Mutual agreement between the employee and the employer
• Termination during the probationary period
• Termination by the employer due to misconduct, performance issues, absence without leave, etc

Notice periods

During the probation period, there is no mandatory notice period. 

After probation, the notice period ranges from 15 to 30 days, depending on the employee’s seniority. In case of resignation, the notice period is 30 days.

Severance pay

Where employees are entitled to severance pay, the amount cannot be lower than ⅓ of the employee’s salary for each completed year of work. Under Article 158 of the Labor Law, “salary” is considered the average monthly salary paid for the last 3 months preceding the month in which the severance pay is paid.

Company registration in Serbia

Companies looking to employ Serbian workers can choose to register their company in Serbia. While this enables direct hiring, it comes with significant setup time, ongoing administration, and accountability for local labor law compliance.  

You can find information on how to register a company in Serbia on government websites.

Working with a workforce management platform is a streamlined way to engage talent in Serbia. Payoneer Workforce Management enables compliant onboarding and engagement of talent in 160+ countries without having to set up a legal entity.

PEO in Serbia 

A PEO is designed to help you with HR and admin tasks for employees you already employ through your local entity.

While some countries allow the use of EORs, in Serbia, companies may use compliant workforce management solutions. These platforms help manage HR and compliance processes for companies without a local entity. This is invaluable for international companies seeking global talent.

Payoneer Workforce Management services in Serbia 

Working with a partner like Payoneer Workforce Management helps support global operations and access local talent. 

With our unified platform, you can get support with:

• Onboarding and offboarding
• Payroll and taxes
• Benefits administration
• Local compliance
• Timesheets and more

Book a demo today.

FAQs

1) Are EORs legal in Serbia?

An EOR in Serbia may not be an applicable model. However, you can use a workforce management platform. A partner like Payoneer Workforce Management helps you compliantly engage talent in Serbia and 160+ other countries without having to set up a legal entity, while offering support to mitigate misclassification risks.

2) How much does it cost to hire Serbian talent?

Employing Serbian talent costs approximately 17% on an annual salary of USD 60,000. For more accurate costs, use our employee cost calculator.

3) Why hire Serbian talent through a workforce management platform?

A workforce management platform like Payoneer Workforce Management lets you onboard and pay independent contractors and employees worldwide in 70+ currencies, with support to stay compliant with local labor laws. Get in touch for details.