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POPULATION

6.6m

CURRENCY

дин (RSD)

CAPITAL CITY

Belgrade

Overview

Serbia, officially the Republic of Serbia, is a country at the crossroads of Central and Southeast Europe. It's known for its diverse culture, stunning landscapes, and rich history. Belgrade, its capital, is known for its nightlife.

Serbia's economy is transitioning, with key sectors including manufacturing, services, and agriculture. The country's strategic location and improving infrastructure make it an attractive destination for foreign investment.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Employment Contracts

Written Agreements

Employment contracts must be concluded in writing in Serbia and signed by both employers and employees. They are made in at least 3 copies, 1 of which must be given to the employee, and 2 copies are kept by the employer.

Employment contracts contain information on identities and address of both parties, name and description of job, working hours, salary and benefits, leave, etc. They can also contain non-competition clause, established only if there are conditions for the employee to acquire new, particularly important technological knowledge, a wide circle of business partners or to learn important business information and secrets by working for the employer for a maximum of 1 year.

Oral Agreements

Written employment contracts are mandatory in Serbia. If an employment contract is not concluded in writing, the employment relationship is considered to be concluded for an indefinite term.

Implied Agreements

An employment contract will be implied if the words, signs, and actions of the parties involved express the existence of such a contract.

Working Hours

Full-time work is 40 hours per week or 8 hours a day. A general act can establish that shorter work week than 40 hours per week, but not shorter than 36 hours per week. For employees under 18 years of age, working hours must not exceed 35 hours a week or 8 hours a day. For employees working in particularly difficult, strenuous and health-damaging jobs, working hours are reduced in proportion to the harmful effect of working conditions on employees' health and work ability, and by a maximum of 10 hours per week.

The schedule of working hours within the working week is determined by employers.

Employers can also redistribute working time of employees such that in a period of 6 months their average is not longer than the contracted working time, when the nature of the activity requires it. In case of redistribution of working hours, working hours cannot last longer than 60 hours per week. Redistribution of working time is not considered overtime.

Probationary Period

Indefinite-term employment contracts can include probationary periods of up to 6 months. During probation, employers can terminate the contract by giving at least 5 days' notice with a justified cause. Employees who do not demonstrate adequate work and professional skills during the trial period will have their contract terminated on the day of the expiry of the term specified in the employment contract.

Employment Termination/Severance

Notice Period

An employer may terminate an employment contract by giving notification in writing with the reason for termination and advice on the legal remedy. The employee may terminate the employment contract by giving at least 15 days' notice to the employer in writing. If the employment is terminated due to lack of performance or skills, the employee must be given advance notice of at least 8 days and not more than 30 days. If a warning has been issued to the employee within the last 6 months stating how they underperformed, how to improve performance, and how long the employee has to improve, then there is no notice requirement for the employee's termination. In case of economic redundancy, no notice is required, but employees are paid severance.

Severance Benefits

Employees who are made redundant are entitled to severance pay in the amount of at least 1/3 of the average earnings over the last 3 months for each year of service. Work for a predecessor employer (in the case of acquisition) is included in the years of service. No severance is paid for those dismissed for personal reasons. Employees who retire are also paid severance in the form of 2 times their average monthly salary.

Compensation

Minimum Wage

All employees in Serbia have the right to a minimum wage for standard performance and time spent at work. Minimum wage is determined by the decision of the Social-Economic Council after negotiations with trade unions. If the Social and Economic Council does not make a decision within 15 days from the date of the start of the negotiations, the government makes a decision on the level of the minimum wage within the next 15 days.

The minimum wage is RSD 308.00 per hour, effective January 1, 2025.

Overtime, Holiday & Vacation Pay

Employers can ask their employees to work longer than full-time in case of force majeure, sudden increase in workload and in other cases when it is necessary to complete unplanned work within a certain period. Overtime cannot last longer than 8 hours a week. An employee cannot work more than 12 hours a day, including overtime. Employees are paid at least 26% of their basic wage as a premium for working overtime.

Employees who work on public holidays are entitled to a premium of at least 110% of their basic salary.

Employees are paid their average salary for the duration of annual leave.

Immigration & Visas

Visas

Serbia issues the following types of visa for entry:

  • Short stay visa (Visa C) - A short-stay visa is an authorization to enter the country, transit through Serbia or stay in the country for up to 90 days in any period of 180 days, counting from the day of first entry. It is visa is issued for tourist, business and other trips for single or multiple entries.
  • Long stay visa (Visa D) - A long-stay visa is an authorization to enter and stay in Serbia for a period of 90 to 180 days. Visa D is issued to a foreign citizen who needs a visa to enter Serbia and who intends to apply for a temporary residence permit.

Serbia allows visa-free entry to holders of foreign national passports who have a valid Schengen visa, a visa of Great Britain and other member states of the European Union, or a visa of the United States of America, as well as for holders of foreign national passports that have a regulated stay in Schengen zone countries, European Union member states or the United States of America.

Work Permits

Foreign citizens who are employed in Serbia must obtain a residence permit and work permit unless an international agreement stipulates otherwise. A long stay visa is required to enter the country and apply for the permits.

A work permit can be issued as personal work permit or work permit. A personal work permit is a work permit that enables a foreign national to freely employ, self-employ and exercise unemployment rights. It is issued if the foreign national has a permanent residence permit, has refugee status, or belongs to a special category. A personal work permit is issued in cases determined by an international agreement and is valid for the period that the foreign national's ID is valid.

A work permit is a type of work permit issued as:

  • Work permit for employment
  • Work permit for special cases of employment
  • Work permit for self-employment

A foreign national with a work permit can only perform the jobs for which they have received a permit in Serbia.

Students who are foreign nationals may obtain a work permit as long as the employer follows the requirements listed above. However, the student may not work more than 20 hours a week or 80 hours a month while school is in session.

Employers who have their headquarters in a member state of the European Union, the European Economic Area, or the Swiss Confederation may send an employee who is not an EU citizen to work without a work permit provided that the employee has a valid residence and work permit for the member state which the employer is headquartered.

Population 6.6m

Population in total, including all residents regardless of legal status © 2024 - WBGEUROSTAT

57.4%

Urban Population

87.7%

Internet access

83.3%

Banking access

100%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Vacation Leave

Employees in Serbia are entitled to paid annual leave of at least 4 weeks. Employees are also entitled to an additional 5 days of paid leave per year. They acquire the right to use annual leave in the calendar year after 1 month of continuous employment. Continuous work also includes the time of temporary incapacity for work.

Annual leave can be used all at once or in 2 or more parts. If an employee uses annual leave in parts, the first part is used for at least 2 working weeks continuously during the calendar year, and the rest until June 30 of the following year at the latest.

Employees cannot waive the right to annual leave, nor can that right be denied or replaced by monetary compensation, except in the case of termination of the employment relationship.

Sick Leave

Employees are entitled to paid sick leave of up to 30 days a year. They must provide a medical certificate within 3 days from the end date of temporary incapacity. They are paid compensation for the leave as follows:

  • General illness or injury - 65% of the average salary in the previous 12 months
  • Injury at work or occupational disease - 100% of the average salary in the previous 12 months.

Maternity Leave

Serbia grants a maternity and childcare leave totaling 365 days, starting at the earliest 45 days, and as necessary, 28 days before the expected date of childbirth. Maternity leave lasts up to 3 months from the day of childbirth. If a mother is unable to take leave or dies, the father of the child becomes eligible for the leave. Maternity leave is still granted in case of stillbirth or the child dies before the end of the maternity leave.

During maternity leave and childcare leave, an employed woman, or father of a child, has the right to compensation equal to average salary in the last 18 months. The minimum maternity benefit is the minimum monthly wage.

Pregnant employees have the right to paid leave from work during the day in order to perform health examinations related to pregnancy, provided they inform their employers in a timely manner. They cannot be employed at night or in overtime work or in jobs that endanger their life.

Paternity Leave

In Serbia, fathers are entitled to 5 days of paid paternity leave. They also become eligible for unused maternity leave in case of their wife's inability to care for the child because of illness or death during childbirth or maternity leave.

Social Security

Pension

Serbia's Institute for Social Insurance provides retirement (old-age) pension to insured members. It is mandatory for all employers to register their employees in the Pension and Disability Insurance scheme. Both employees and employers pay contributions.

Insured persons acquire the right to an old-age pension when they reach 63 years and 8 months of age (increasing to 65 years by 2032) with at least 15 years of insurance coverage or at any age with 45 years of insurance coverage. Insured members can take early retirement when they reach 60 years of age with at least 40 years of insurance coverage.

The amount of pension is determined by multiplying the personal points with the value of the general point on the day the rights are exercised. The amount of the early old-age pension is determined in the same way as the amount of the old-age pension, permanently reduced by 0.34% for each month before reaching the age of 65, and can be reduced by a maximum of 20.4%.

Dependents/Survivors Benefits

Serbia's Institute of Social Insurance grants family pension to dependents of deceased insured persons who were entitled to old-age or disability pension or had completed at least 5 years of insurance or was a beneficiary of old-age or disability pension. Dependents include spouses, common-law partners, children and parents of the deceased, provided they fulfill the eligibility requirements.

The family pension is determined from the old-age or disability pension that would belong to the insured person at the time of death. It is paid as 70% for 1 survivor, 80% for 2 survivors, 90% for 3 survivors, and 100% for 4 or more survivors.

Invalidity Benefits

Serbia's Institute of Social Insurance grants disability pension to insured persons who have a complete loss of working ability under the following circumstances:

  • If the disability is caused by an injury at work or an occupational disease
  • If the disability is caused by an injury outside of work or an illness, provided that the loss of working capacity occurred before reaching retirement age and that 5 years of insurance experience have been completed.

An insured person whose disability, caused by an illness or injury outside of work, occurred before reaching the age of 30 is entitled to a disability pension if they have 1 to 3 years of insurance coverage depending on their age.

The amount of pension is determined by multiplying the personal points with the value of the general point on the day the rights are exercised.

Minimum Age

The minimum age for concluding an employment contract is 15. If a person younger than 18 is not prohibited by law from working, an employment relationship can be established with the written consent of parents, adoptive parents, or guardians if the work does not endanger their health, morals, or education.

A person under the age of 18 can establish an employment relationship only based on the findings of the competent health authority, which establishes that they are capable of performing the tasks for which he establishes the employment relationship and that such tasks are not harmful to their health.

An employee under 18 cannot work full-time for more than 35 hours a week or 8 hours a day. Overtime work and redistribution of working time are prohibited. Employees under 18 cannot work at night except in the fields of culture, sports, art, and advertising.

Unemployment 7.4%

Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBGILO

57.2%

Labor force population share

46.3%

Female share of labor force

72%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage

         

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