Establishing and managing a payroll in Serbia
The Eastern European nation of Serbia has experienced significant economic growth in recent years, and it is becoming a popular destination for foreign investment.
If you are interested in expanding your organization into Serbia’s exciting marketplace, then an important step is likely to be setting up a Serbian payroll and start hiring a workforce locally. This process can be long and difficult, potentially causing delays to your expansion and incurring unexpected expenses.
At Horizons, we specialize in helping businesses expand internationally, including into Serbia. Our payroll setup and management services are designed specifically to give clients a faster, more reliable route of entry into Serbian employment and expansion, ensuring you operate in full compliance with local regulations, whether or not you have an entity in the country.
Why choose the Horizons payroll solution?
If you have an entity
If you have already set up a legal entity within Serbia, our payroll team can take all the complex payroll administration off your hands, helping you employ locally in accordance with local employment laws, managing HR, contracts, and handle any associated administration.
This option is perfect for larger businesses that could benefit from outsourced Serbia payroll and consultancy services.
If you don’t have an entity
If you have not registered an official entity in Serbia, we can provide our more comprehensive payroll service, offering our Serbian subsidiary to work as your employer of record in the country. Our Serbia payroll experts can also manage your HR, contracts, legal compliance, and more.
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Serbia payroll guide
Taxation and withholdings in Serbia
Employees and employers in Serbia need to contribute a percentage of salaries to various social funds. For health insurance, they must contribute 6.15% each. For unemployment insurance, they must contribute 0.75% each. For pensions, employers and employees must contribute 17.9% and 19.9% respectively.
The income tax rate in Serbia is progressive, with employees paying a higher percentage of income as they earn more. The rates range from 10% to 20%
The corporate tax rate in Serbia is 15% for most companies.
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Pension and disability
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11.5%
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Health insurance
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5.15%
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Total Employment Cost
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16.65% |
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Pension and disability
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14%
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Health insurance
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5.15%
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Unemployment insurance
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0.75%
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Total Employee Cost
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19.9% |
Entitlements and terminations rules in Serbia
Employees in Serbia are generally entitled to between eight and 30 days of notice prior to termination, but the exact length depends on how long the employee has been with the company and the terms stated in the employment contract.
Employees may also be entitled to severance payments in some cases, which is linked to the employee’s salary and length of service.
How to establish a Serbia payroll
Establishing a payroll in Serbia for local employment can be a complex process. Firstly, your organization will generally need an in-country entity to act as employer of record for any employees. You will then need to closely follow the relevant business and employment regulations and administrative procedures, which can be very time-consuming.
Alternatively, you can outsource your payroll setup and management to Horizons. We can provide our Serbian subsidiary to act as employer of record for your new hires, so you don’t even need to have a registered entity in Serbia. Additionally, we can establish your payroll and handle all the ongoing administration and compliance work, giving you the freedom to expand into the country more efficiently.
Manage payroll in Serbia
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.
