Compensation and benefits are important to your employees, as well as to the overall health of your company. Meeting or exceeding Serbia’s compensation laws will help you attain greater retention rates and give you a leg up over the competition. If your Serbia benefit management plan provides the statutory minimum, you can feel confident about staying compliant and provide supplemental benefits to make your open positions more attractive.
Globalization Partners can help with complicated Serbia compensation laws, hiring, and benefits. We use our Employer of Record services to onboard employees in a few days and ensure you stay compliant with all the country’s compensation and benefit laws.
Serbia Compensation Laws
As of 2022, Serbia’s hourly minimum wage is 201.22 Serbian dinars (RSD). This rate will increase to RSD 230 on January 1st, 2023.
The country’s laws do not require bonuses, but all Serbians are entitled to a 0.4% pay raise for each year they work. Employees must work overtime per a reasonable request by the employer. However, that work cannot exceed eight hours a week and four hours a day. Employees should receive at least a 26% increase in their basic salary for overtime work.
Guaranteed Benefits in Serbia
Your Serbia benefit management plan must include guaranteed benefits required by law. This includes at least nine days off for the country’s seven holidays and a minimum of 20 days of paid vacation each year. Serbia also has a unique sick leave policy where employees can get 100% of pay for up to 30 days if the illness is due to a job injury. If the injury or illness was not from the job, the employee gets 65% of their salary.
Maternity and paternity leave are two other guaranteed benefits in Serbia. Female employees get up to a full year of paid time off for their first two children, and two years for their third and fourth. Fathers get seven days of paternity leave.
Serbia Benefits Management
Some benefits are not required by law but can leave a positive impression on employees. For example, Serbia compensation laws do not require a bonus, but most employers build a performance-based bonus into an employee’s salary. Many employees also value private healthcare, so you can either provide a plan or a stipend to employees.
Restrictions for Benefits and Compensation
Before crafting a benefit management plan, you must set up a subsidiary in the country. However, it can take weeks or months to learn all of Serbia’s employment laws and incorporate fully. During that time, you cannot hire or give out compensation and benefits.
Globalization Partners helps you start working sooner through our Employer of Record services. We use Serbia compensation and benefit outsourcing to help you work faster, without the added stress of compliance.
Choose Globalization Partners Today
If you’re planning an expansion to Serbia, contact us today about our Serbia benefit and compensation outsourcing services.