Serbia

HR and HR Software Guide

Country Overview

Serbia, an emerging market economy, follows the free-market model with the predominant services sector, followed by the industrial and agricultural sector. Serbia’s primary exports include iron and steel, automobiles, rubber, wheat, clothes, non-ferrous metals, and electric appliances. The total value of imports and exports is equal to 113.7% of GDP. The economic growth is driven by increased investment, facilitated by reforms aimed at improving the business climate.

Currency: Serbian Dinar

Principal Language: Serbian

Government: Republic, Parliamentary republic

Capital City:  Belgrade

Major Provinces:  Belgrade, Nis, Novi Sad, Novi Pazar and Subotica

The regular work schedule comprises 40 hours per day and 5 working days in a week. The work hours can be extended depending on the business needs.

Overtime
Work done beyond regular work hours is considered overtime which cannot exceed 8 hours in a week. Employers cannot ask employees to work for more than 12 hours in a day including overtime.

Holidays

The following national holidays are observed across Serbia:

  • New Year’s Day – January 1 and 2
  • Christmas Day – January 7
  • Sretenje – February 15 and 16 (Statehood Day of the Republic of Serbia)
  • Easter holidays – (Good Friday and Easter Monday)
  • Labor Day – May 1 and 2
  • Armistice Day – November 11

Annual Leave
Employees are entitled to 20 days’ annual leave out of which 2 weeks must be taken continuously.

Sick Leave
Employees who sustain a work-related injury are entitled to 100% pay for up to 30 days, and those who do not sustain an on-the-job injury are entitled to 65% pay.

Maternity Leave
Women employees are entitled to 365 days’ maternity leave for first 2 children and 2 years for 3rd and 4th children. In case of multiple births during 1st or 2nd pregnancy, employees are entitled to 2 years’ maternity leave. Employees are entitled to maternity pay equal to average wages earned during 12 months before the maternity leave began.

Fathers of newborn child/children are entitled to 7 days’ paternity leave.

Pension and Social Security

Old-age Pension: The old-age pension is based on the ratio of the person’s wages to the average wages, the number of years of contributions, and the general point’s value (715.71 dinars).

Early Old-age Pension: The early old-age pension is decreased by 0.34% for every month (up to 20.4%) preceding the normal retirement age.

Schedule of Payments: The pension is paid twice each month to all pensioners except former self-employed individuals who receive the pension once a month.

Benefit Adjustment: The pension benefits are adjusted twice a year (April and October) based on the GDP growth rate and the fluctuations in the consumer price index.

Disability Pension 

An employee must be younger than the normal retirement age, and be assessed as incapable of all work (total disability). There is no minimum qualifying period for a disability resulting from a work injury or occupational disease.

If the insured is younger than 58 years old, his/her work capacity must be reassessed within 3 years of the original assessment. Cash compensation for body impairment and Constant-attendance supplement: A monthly benefit is paid.

Schedule of Payments: The pension is paid twice each month to all pensioners except former self-employed individuals who receive the pension once a month.

Benefit Adjustment: The pension benefits are adjusted twice a year (April and October) based on the GDP growth rate and the fluctuations in the consumer price index.

Survivor Pension

The survivor pension (based on the old-age pension) is given to survivors at the following ratios:

  • 70% to 1 survivor, 140% to a full orphan
  • 80% to 2 survivors, 160% to full orphans
  • 90% to 3 survivors, 180% to full orphans
  • 100% to 4 or more survivors, 200% to full orphans

The minimum survivor pension (based on the old-age pension) is calculated using 20 years’ coverage.

Benefit Adjustment: The pension benefits are adjusted twice a year (April and October) based on the GDP growth rate and the fluctuations in the consumer price index.

Funeral Grant: The funeral expenses up to 150% of the average pension in the last quarter are paid.

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  • Ensured compliance with in-country employment and labor laws
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  • Supporting 170+ countries and localized in 17+ languages
  • Improved employee experience with employee self-service functionality and 24/7 employee support

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