Our guide to Payroll in Serbia

Doing Business in Serbia

Investing in Serbia

The Serbian Government welcomes inward investment, with an array of incentives to attract investors in key future industries for the economy.

Basic Facts about Serbia

General Information:

Full Name: Republic of Serbia

Population: 8.762 million (UN, 2018, including Kosovo)

Capital: Belgrade

Major Language: Serbian

Major Religion: Christianity

Monetary Unit: Serbian Dinar (RSD)

Main Exports: Electrical machinery, insulated wire, vehicles, rubber, frozen fruits and nuts

Internet Domain: .rs

International Dialing Code: +381

How to say:

Hello: Здраво

Good morning: Добро Јутро

Good evening: Добро Вече

Do you speak English? Да Ли Говорите Енглески?

Goodbye: Збогом

Thank you: Хвала

See you later: Видимо Се Касније

Dates & Numbers

The date is written in the format (date/month/year) for example 1 July 2015 is 01/07/2015.

Numbers are written with a comma to denote fractions, for example 150.000,75 RSD.

Registrations and Establishing an Entity

• The company should register with the Pension Insurance Fund, Business Registers Agency and Tax Administration.
• The key legislative authority in Serbia is the Republic Tax Administration, situated at Save Maškovića 3-5, Belgrade.

Banking

In Serbia, it is mandatory to make payments to employees and authorities from an in-country bank account in RSD.

Generally, banks are open from 0800 to 1600 hours Monday to Friday, branches are open from 0900 to 1700 and 0900 to 1300 hours on Saturdays.

Working Week

The working week in Serbia is Monday to Friday. The general working hours for commercial offices in Serbia is between 0900 and 1700 hours.

Employment Law

Holiday Accruals

• During annual leave, employees are entitled to salary compensation equal to the average salary earned in the 12 months preceding the month of leave
• Internal acts may grant more favorable terms, but not less than the 12‑month average.

Maternity Leave

• Compensation during maternity / childcare leave is calculated based on the average base salary in the preceding 18 months
• Paid from state funds, not employer cost

Paternity Leave

• Fathers are entitled to paid leave on birth of a child (typically 5–7 working days, depending on employer regulations)
• Paternity leave is not equivalent to maternity leave
• Fathers may later use parental leave, but under different conditions

Sickness

• Paid by RFZO
• 65% for ordinary illness
• 100% if pregnancy‑related or work‑related
• Basis is average salary in previous 12 months, not 3 month

National Service

Serbia abolished compulsory military service on 1 January 2011.

Tax & Social Security

The tax year runs from 1st January to 31st December.

The lowest monthly contribution base is 51,297.00 RSD and the highest is 732,820.00 RSD, applicable from 01.01.2026 until 31.12.2026.

Income Tax

Annual personal income tax applies to individuals whose annual income exceeds the statutory threshold, calculated as three times the average annual salary in Serbia, as published by the Statistical Office each year.

Salary tax (10%) is not paid on:

Domestic business travel allowances up to the government‑prescribed non‑taxable limit.

International business travel allowances up to EUR 90 per day, as prescribed by the Government of the Republic of Serbia.

The deadline for submission of the annual personal income tax return is 15 May of the year following the tax year.

Penalties for late submission or late payment of annual personal income tax range from RSD 100,000 to RSD 2,000,000 for legal entities.

Social Security

Social security contributions and salary tax are payable on the date of salary payment, together with the payroll tax return.

Contributions are calculated within the statutory minimum and maximum monthly contribution bases applicable for 2026.

Penalties for late or non‑payment of social security contributions range from RSD 100,000 to RSD 2,000,000 for legal entities.

Reporting

Monthly

PPP-PD form

This form is required to report paid taxes and social insurance (on a monthly and annual basis)

Yearly

PPP-PO form

The deadline for PPP-PO form is 31st January for the previous year. These forms are issued to employees and are used for the calculation of the annual income tax.

All documents are to be sent to the Tax Administration and can be submitted by the client or by a partner. It is mandatory for the forms to be signed by the client.

Payroll

It is legal in Serbia to provide online payslips.

Reports

Payroll reports must be kept for between five and ten years depending on the type of report.

Payslip Example

English Language

Local Language

New Employees

New starts have to be registered with Pension and Insurance Fund and Health Insurance. The deadline for new starts to be registered with the authorities in Serbia is at the latest, prior to commencing employment.

For setting up a New Start the details required include:

• ID
• Employment Agreement

Leavers

All dues to a Leaver have to be affected within 30 days from Termination of the Employment Agreement. A leaver in Serbia has to be de-registered from Health and Pension Insurance Funds within three days.

Employee Benefits

Expenses

• Domestic business travel per diem (non-taxable): RSD 3,471/day
• International business travel per diem (non-taxable): Up to EUR 90/day
• Business travel using private car: Reimbursable based on documented actual expenses, within statutory non-taxable limits.

Visas & Work Permits

From January 2016, new legislation came into effect in Serbia that regulates the assignment of employees to foreign posts. The new law states that any overseas business trip may not exceed 30 days of continuous stay or 90 days in total during 1 calendar year with breaks in between.

As Serbia is not a member of the EU or the EEA, all Foreigner Nationals will require a Work Permit to work in the Country.

Work permits are issued by the National Employment Service.

To obtain a Work Permit:

• Foreign nationals employed in or seconded to Serbia will require a work permit.
• Foreign nationals must obtain a “White card” (residence address registration) by registering at the Municipal Station with the Ministry of Interior (within 24 hours of arrival).
• A Residence Permit should be applied for within 3 days of arrival with the Police Office for Foreign Nationals.
• To obtain a residence permit the Foreign national will be required to provide; a valid passport; a completed application form; the “White card” issued by the Municipal police station; an employment contract (translated into Serbian) stating that the employment will start after obtaining the Residence Permit in Serbia and a letter from the employer explaining the need for the Foreign national’s skills and qualifications.
• Once the Residence Permit has been obtained, a Work Permit has to be applied for submitting similar documents as for the Residence Permit.
• The Residence and Work Permits are issued for 6 months and are renewable (when renewed they are issued for one year).

All official documents must be translated into Serbian.

• All payroll payments must be made from an in-country RSD bank account
• Typical commercial banking hours:
  
  • Weekdays: 08:00–16:00
• • Branches: 09:00–17:00 (Mon–Fri), 09:00–13:00 (Sat)
• Work week: Monday to Friday
• Payroll and tax reporting is coordinated with the Republic Tax Administration in Belgrade
• The legal currency is the Serbian Dinar (RSD)
• Payroll reports must be retained for between five to ten years
• All forms (PPP-PD, PPP-PO) must be signed by the client, even if submitted by a partner
• Travel reimbursement, allowances, and sick leave tax treatments are tightly regulated and documented