What if there was a talent hub in the heart of Europe – brimming with highly skilled, English-speaking professionals, operating in a favorable time zone, and at a fraction of the cost of Western tech hubs?

Welcome to Serbia.

This isn’t just a guide on hiring; it’s a strategic look at why and how you can leverage Serbia to build a stronger, more resilient global team.

Table of contents:

The Serbian Advantage: Why Your Next Hire Should Be Here

Forward-thinking companies are increasingly looking beyond the traditional tech centers, and Serbia – actively promoted by institutions like the Development Agency of Serbia (RAS) – has emerged as a powerhouse for talent. Here’s why your next strategic move should be here.

• A Deep Pool of Tech & Professional Talent Serbia is renowned for its exceptional IT and engineering talent. With a strong educational system focused on STEM, the country produces world-class professionals skilled in software development, data science, UX/UI design, and many other creative and technical industries.
• Exceptional English Proficiency Communication is never a barrier. Serbia consistently ranks high in Europe for English language proficiency, with a large percentage of the professional workforce being fluent. This ensures seamless integration with your existing international teams.
• Significant Cost-Effectiveness Let’s be direct: your budget goes further here. Highly competitive salaries and lower operational costs mean you can hire more top-tier talent for your budget compared to expensive markets like the US, UK, or Germany, without compromising on quality.
• Strategic Geographic Position Located in the Central European Timezone (CET), a Serbian team can collaborate effortlessly with colleagues across Europe. The time difference also allows for a convenient overlap with business hours in both the Americas and the Middle East, making it a perfect hub for a global team.

The Path to Employment: Your Options for Hiring in Serbia

Once you’ve decided to tap into Serbia’s talent pool, you need to choose the right way to engage them. This is a critical strategic decision.

• Option 1: The Gold Standard – Establishing a Local Entity (Subsidiary) For companies committed to long-term growth, setting up a Serbian subsidiary (a D.O.O.) is the best approach. It signals your commitment to the market and your people. Benefits: You have full control over your operations, can hire full-time employees directly, build a strong local company culture, and fully protect your intellectual property.
• Option 2: The Flexible Start – Working with Independent Contractors Engaging talent on a contract basis can be a good way to start for specific, project-based work. It offers flexibility and a fast start. The Caution: You must be extremely careful. If a contractor works exclusively for you and functions like an employee, authorities can reclassify them. This “misclassification” risk can lead to significant back taxes, fines, and legal liabilities.
• A Note on EOR (Employer of Record): While EOR services can get you started quickly, they function as an intermediary. For companies that want to build a truly integrated and loyal team that embodies their mission, establishing your own entity is always the superior long-term strategy. It creates a direct employer-employee relationship and a true sense of belonging.

The Operational Checklist: From Onboarding to Ongoing Compliance

Choosing your path is just the first step. A series of critical operational tasks must be managed perfectly to ensure you remain compliant and your employees are cared for properly.

• Compliant Employment Contracts: All contracts must be drafted in strict accordance with Serbian Labor Law, outlining all mandatory terms, salary, and working conditions.
• Official Employee Registration: Every new hire must be officially registered with the social security and tax authorities before their first day of work. There is no grace period.
• Robust Payroll & Tax Management: A compliant payroll process is non-negotiable. This means correctly calculating and managing everything from Net to Gross 2 salary, submitting monthly tax returns, and making timely payments to both employees and the state.
• Competitive Benefits Administration: To attract and retain the best talent, you need to understand local expectations for benefits beyond just a base salary, such as private health insurance and other common perks.

Your On-the-Ground Partner for Global Growth

The opportunity in Serbia is immense, but as you can see, the path is paved with administrative and legal complexities that demand local expertise. It’s easy to get bogged down in bureaucracy when your focus should be on building your team.

This is where we step in.

At HLB TM, we serve as your on-the-ground strategic partner. We don’t just process paperwork; we build the entire operational foundation for your Serbian team. From the initial decision-making to the first day of your new hire and beyond, we have you covered.

We handle the company setup, manage the compliant HR and payroll, and take care of the accounting and tax compliance, so you can focus on what you do best: finding and leading great people.

Ready to build your globally-competitive team in Serbia? Let’s have a conversation about your growth strategy.

Contact Us for a Strategic Consultation:

The post Growing Your Global Workforce in Serbia appeared first on HBL.

Payroll processing in Serbia isn’t just about sending money; it is a complex process with unique terminology and strict regulations. Getting it right is fundamental to building employee trust, maintaining morale, and protecting your business from legal and financial risks.

Let’s walk through it together, so you can understand the process from start to finish.

Table of contents:

First, Let’s Talk ‘Gross’: Understanding Serbian Payroll Terminology

Before we dive into calculations, we have to clarify the most common point of confusion for foreign employers: the difference between “Gross 1” and “Gross 2.” Understanding this is key to budgeting accurately.

Here’s how it works:

• Net Salary: This is the straightforward part—the actual amount of money that arrives in your employee’s bank account.
• Gross 1 Salary: This is the employee’s Net Salary plus their personal share of income tax and social security contributions.
• Gross 2 Salary: This is the Gross 1 amount plus the social security contributions that are paid entirely by the employer.

Why it matters: The Gross 2 figure represents the Total Cost of Employment for your business. When you are budgeting for a new hire, you must always calculate the Gross 2 salary to know the full financial commitment.

The Core Components of a Serbian Payslip

So, what makes up the difference between the employee’s net pay and your total cost? The calculation involves several key components.

1. Salary Tax: Serbia has a relatively simple flat personal income tax rate that is applied to an employee’s earnings after a non-taxable allowance.
2. Social Security Contributions: These are mandatory payments that cover state benefits and are split between the employee (deducted from their salary) and the employer (paid on top). They consist of three main parts:
   • Pension and Disability Insurance
   • Health Insurance
   • Unemployment Insurance
3. Other Compensation Elements: A standard Serbian payslip includes more than just a base salary.

• Meal Allowance (Topli obrok): Employers are required to provide a meal allowance. This is typically paid out as a fixed monthly amount and is tax-free up to a limit set by the government.
• Transportation Allowance: You must reimburse employees for their daily commute to and from work. The amount is usually equal to the cost of a monthly public transport pass.

The Monthly Payroll Cycle: A Step-by-Step Overview

Serbian payroll follows a strict monthly cycle with legally defined steps. Missing a step or getting the timing wrong can result in fines and other issues.

1. Data Collection (End of Month): Before any calculations, you must gather all relevant data for each employee, such as days of sick leave, vacation days, overtime hours, bonuses, or any new hires and terminations.
2. Salary Calculation (Start of New Month): Using the collected data, you calculate each employee’s gross and net salary, taxes, and social contributions for the previous month.
3. Tax Return Filing: Before making any payments, you must file a unified tax return (Form PPP-PD) electronically with the Serbian Tax Administration. This return details all the calculated taxes and contributions for all employees.
4. Executing Payments: Once the tax return is submitted and processed by the tax authority, you receive a payment reference number. You then execute two separate payments: one for the net salaries to your employees’ bank accounts, and another single payment to the state to cover all taxes and contributions.
5. Distributing Payslips: You are legally required to provide each employee with an official, detailed payslip outlining all the calculations for that month’s salary.

The High Cost of Getting It Wrong: Common Payroll Pitfalls

While the process is logical, it is also rigid and complex. Small mistakes can lead to significant problems, including:

• Incorrect Calculations: This is the most common pitfall. Miscalculating taxes or contributions can lead to penalties from the Tax Administration and, just as importantly, create frustration and distrust among your employees.
• Late Filings or Payments: Serbian authorities enforce deadlines strictly. Failing to file the tax return or make payments on time will result in automatic fines and interest charges.
• Misunderstanding Labor Laws: Errors related to calculating pay for sick leave, overtime, or holiday entitlements can lead to disputes with employees and legal challenges.
• Data Security Breaches: Payroll data is highly sensitive. Mishandling employee information can have serious legal and reputational consequences for your business.

The Smart Solution: Why Businesses Outsource Their Serbian Payroll

Given the complexity and risks, most foreign companies in Serbia choose to outsource their payroll to a local expert. This isn’t just an expense; it’s a strategic investment in your business for:

• Guaranteed Compliance: Our payroll specialists live and breathe this stuff. We are always up-to-date on the latest changes in Serbian tax and labor laws, ensuring you are always fully compliant.
• Efficiency and Time Savings: Outsourcing frees you and your team from hours of complex administrative work, allowing you to focus on your core business activities.
• Peace of Mind: Knowing that your payroll is handled correctly, your taxes are filed properly, and your employees are paid on time, every single month.
• Expert Support: You have a dedicated partner you can call to ask questions about employment costs, benefits, and any other financial matters related to your team.

Payroll You Can Trust

You’re building a great business with a great team in Serbia. Your focus should be on leading them and growing your company.

Let us handle the complexities of payroll. When you’re ready to ensure your payroll is seamless, compliant, and reliable from day one, we’re here to help.

Contact Us to Learn More About Our Payroll Services:

The post Complete Guide to Payroll Processing in Serbia appeared first on HBL.

Can a foreign citizen or an overseas company actually own and register a business in Serbia?

Let’s make it simple: Yes, absolutely.

Serbia’s framework is fully open to foreign ownership. But here’s the part that brings the most relief to the executives I work with: you don’t even need to be physically present in Serbia to make it happen. The entire formation process can be handled remotely through a Power of Attorney (PoA) delegated to a trusted local partner.

Now, you may have heard that the official company registration in Serbia itself is fast — the Serbian Business Register typically issues a decision within five working days. And that’s true.

However, a decade of experience has taught me that a successful launch isn’t determined by that five-day sprint. It’s won or lost in the preparation that happens before you submit a single document. Getting these initial steps right is the key to avoiding delays and building a compliant foundation from day one.

In this guide, we’ll walk through that exact blueprint.

Table of Contents:

Part 1: The Foundation — 3 Key Decisions Before You Register

A fast company registration means nothing if the foundation is weak. Before a single form is filled out, my most successful clients focus on getting these three strategic decisions right.

1. Your Business Structure: The d.o.o. is Your Gold Standard

While Serbian law offers various legal structures, let’s simplify this immediately. For over 99% of foreign companies I’ve worked with, the right — and only — choice to consider is the Limited Liability Company (d.o.o. or LLC).

In Serbian, this is a društvo sa ograničenom odgovornošću. Think of it as the universally recognized structure that protects the owners from the company’s debts and obligations. It establishes a clear, separate Serbian legal entity, which is exactly what you want for compliance, banking, and contracts.

What about a Branch Office?

The main alternative is a Branch Office (ogranak). However, it’s crucial to understand the difference: a Branch is an extension of the parent company, not a separate legal entity. This means your foreign parent company is directly liable for all the activities and debts of its Serbian operation. For this reason, most investors prefer the liability shield of a d.o.o.

(While other forms like partnerships and joint-stock companies exist, they are designed for very specific, complex local situations and are rarely suitable for international expansion.)

2. Your Company Name: Be Unique

Your company name must be unique in the Serbian Business Registers Agency (SBRA) database. It can be in any language using the Latin alphabet, but it can’t be identical or confusingly similar to an existing company. A quick search on the SBRA’s online portal can verify availability in minutes.

3. Your Company Director: Local or Foreign?

Every Serbian company must have at least one appointed director. This individual is legally responsible for the company’s operations. The director can be a Serbian citizen or a foreign national.

If you appoint a foreign director, be aware that this will require them to obtain a Serbian residency and work permit. This is a critical step in your operational timeline and something we plan for carefully with our clients.

Part 2: The Core Process — Drafting the Paperwork

With your foundational decisions made, it’s time to create the single most important document for your new company.

Step 1: Prepare the Memorandum of Association (MoA)

The Memorandum of Association (or Osnivački akt in Serbian) is your company’s founding charter. Think of it as the constitution for your business. It formalizes all your key decisions into one legal document.

While templates exist, getting this document right is critical. It must be drafted perfectly in Serbian and contain the following key information:

• Founder(s) Information: Full details of the owners, whether they are individuals or a foreign parent company.
• Company Name & Registered Address: The official name and Serbian address you decided on.
• Primary Business Activity: You must declare a “core activity code” that best represents your main business function. While your company can perform other activities, this code of activity is for official classification. If your primary business focus changes later, this can be updated.
• Share Capital: You must state the initial share capital. The legal minimum is symbolic (less than €1), but we always advise on a practical amount to cover initial bank fees and setup costs.
• Director(s) and Authority: The full details of the appointed director(s) and the scope of their powers to represent the company.

💡 Pro Tip: Use a Virtual Office for Your Registered Address
Instead of immediately leasing expensive physical office space, most of our clients start with a virtual office. This is a smart, cost-effective service that provides you with a legal registered address, handles your incoming mail, and satisfies all legal requirements without the high overhead of a physical lease. It’s the perfect solution for getting started quickly and flexibly.

Step 2: Notary Verification — Making it Official

This isn’t just a formality; it’s a mandatory legal step. The Memorandum of Association must be certified by a registered Notary Public in Serbia.

The founders (or their designated representative) must sign the document, and the notary verifies their identity and the legality of the act. This is where the Power of Attorney (PoA) we discussed earlier becomes critical, as it allows your local partner in Serbia to handle this step on your behalf.

Step 3: Submit Your Company Registration Package to the SBRA

With your notarized Memorandum of Association in hand, you’re ready for the final step in the formal registration process: submitting your complete application package to the Serbian Business Registers Agency (SBRA), or Agencija za privredne registre (APR).

This is the official finish line. Your submission package must be complete and accurate. It will include:

• The Official Application Form: A standardized registration form that formally requests the creation of your d.o.o.
• Your Notarized Memorandum of Association (MoA): The master document we prepared and had certified in the previous steps.
• Proof of Identity for the Founder(s): A clear copy of their passport (for an individual) or a recent, authenticated extract from the business registry of your home country (for a corporate founder).
• Proof of Payment: A bank receipt confirming you have paid the state registration fees.

⚠️ Crucial Tip for Corporate Founders:
The extract from your foreign business registry is where many applications get delayed. It must be a recent copy, officially translated into Serbian by a certified court interpreter, and typically needs to be authenticated with an Apostille stamp. Getting this document prepared correctly before you start the process is one of the most important time-saving actions you can take.

Receiving Your Company’s “Birth Certificate”

Once your complete package is submitted, the clock starts. The SBRA is legally required to process the application and issue a Decision on Registration within five business days.

This decision is the document you’ve been waiting for. It contains your official company registration number (matični broj) and your Tax Identification Number (PIB).

Congratulations! At this point, your Serbian company officially exists.

Part 3: Post-Registration — Activating Your Business

Your company officially exists on paper, but to hire staff, issue invoices, and operate legally, a few more steps are essential. This is the activation phase, where we turn your registered entity into a fully functional business.

Step 1: Open Your Corporate Bank Account

Your SBRA registration decision is the key that unlocks the Serbian banking system. With this document, you can open a permanent corporate bank account. While each bank has its own specific forms, you will generally need to provide your registration decision, the director’s passport, and a list of authorized signatories.

Expert Tip: A local partner can significantly speed up this process by helping you navigate the specific KYC (Know Your Customer) requirements for foreign-owned entities, which can vary between banks.

Step 2: Get Compliant with the Tax Authority

This involves two critical, interconnected tasks that must be handled promptly.

A) File Your Initial Tax Application
This is a time-sensitive step that many new companies miss. Within 15 days of your official registration date, you must file an initial tax application with the Tax Administration. This declares your company’s existence for corporate income tax purposes and is typically handled by your appointed accountant.

B) Secure Your Director’s Qualified Electronic Signature (QES)
Serbia’s government services are highly digitized. To file tax returns, submit annual financial reports, and manage employee registrations, your company director needs a QES.

Crucial Logistical Point: To obtain the signature, an application is submitted to an official certification body. However, the director must typically collect the final certificate in person. We always help our clients plan for this to ensure it doesn’t become a logistical bottleneck.

Step 3: Make the Strategic VAT Decision

One of the first financial decisions you’ll face is whether to register for Value-Added Tax (VAT, or PDV in Serbian).

The rule is straightforward: if your projected revenue in any 12-month period will exceed RSD 8,000,000 (approximately €68,000), you are legally required to register for VAT.

Below this threshold, registration is optional. The right choice depends entirely on your business model — who your customers are and the nature of your expenses. This is a key strategic decision with long-term cash flow implications, and it’s one of the first things a good advisor will discuss with you.

Your Runway is Clear, But the Journey Continues

As we’ve walked through, registering a company in Serbia is a logical, step-by-step process. It’s not an insurmountable maze. With a clear map, you can navigate the path from initial decision to a fully registered entity, ready for business.

But registration is just the first milestone.

The ongoing journey involves the day-to-day realities of staying compliant: managing monthly accounting, processing payroll according to Serbian Labour Law, optimizing your tax position, and preparing annual financial reports.

This is where choosing the right partner becomes the most critical decision you’ll make. A reliable advisor doesn’t just file paperwork; they understand your business, anticipate your needs, and turn the complexities of Serbian compliance into a strategic advantage for you.

How We Can Help

At HLB TM Belgrade, this is our core mission. We provide the integrated support that allows our clients — from ambitious startups to global leaders like PowerChina and Paysend — to focus on their growth, not on bureaucracy.

We guide you through the entire lifecycle:

• Company Formation: Handling the entire company registration process seamlessly.
• Accounting & Tax: Providing ongoing bookkeeping, tax optimization, and annual reporting.
• Payroll & HR: Managing everything from compliant employment contracts to monthly payroll processing.

If you are looking for a dedicated partner in Serbia to ensure your expansion is built on a foundation of compliance and efficiency, I invite you to start a conversation with us here.

Need everything done remotely?

Get in touch with us, and we will guide you through the company registration process.

The post Company Registration in Serbia: A Clear Runway for Foreign Founders appeared first on HBL.

The simplest explanation of overtime work is that it refers to the additional time needed to complete work that was not previously planned, if it is about unforeseen or urgent tasks. Overtime should be treated as an exception. That is why the legal regulations clearly specify the circumstances when an employee is obliged to work overtime.

Below is a more detailed explanation of this topic.

Overtime work in Serbia in a law

Overtime work in Serbia is any work that is longer than full time, and that lasts between 36 and 40 working hours per week.

All legal issues for overtime work are regulated by the Labor Law, the general act of the employer or the employment contract. In this way, it is possible to ensure the respect of all the rights of employees, as well as the obligations of the employer.

In order for overtime conditions to be clear, it is necessary to understand the concept of working time and legal regulations. Below is a more detailed explanation of what each employee should know and what the employer’s obligations are.

Working hours of the employee

Working time represents the period of time during the day in which the employee is obliged to come to work and perform tasks according to the employer’s orders. This implies the presence of the employee at the place where these jobs are performed, whether it is day shifts or shift work.

The time when the employee is ready to respond to the employer’s call if the need arises is not included in working time (provided that he is not at the workplace). On the other hand, the time that the employee spends on standby in performing tasks at the request of the employer is included in working time.

In accordance with the law, the working hours of an employee can be:

1. Full time – 40 hours per week, but not shorter than 36 hours per week.
2. Part-time working hours – working hours that are shorter than full-time working hours.
3. Shortened working hours – working hours for workers who work in risky, extremely difficult, strenuous and health-damaging jobs, where, despite the application of appropriate safety measures and the protection of life and health at work, means and equipment for personal protection at work exist increased harmful effect on their health. It can be a maximum of 10 hours a week.

In all mentioned cases of working time, the employee realizes all the rights from the employment relationship. Working hours, standby time, as well as the amount of compensation are defined by the law, the general act of the employer or the employment contract.

When overtime work is performed in Serbia

The employee is obliged to work longer than full-time at the employer’s request. So, these are situations where the employer has the right to demand overtime from the employee:

• in case of force majeure,
• due to the sudden increase in workload,
• other cases when it is necessary to finish work that was not planned within a certain period.

If any of these circumstances do not exist, the employee can refuse to work overtime work in Serbia. In that case, the refusal would not constitute a breach of work discipline, which is also one of the grounds for the termination of the employment contract.

Examples of when overtime is most often performed:

• when there is a need to urgently complete unplanned work that could not be completed or planned during regular working hours;
• if during working hours there is an increased volume of work, unexpected delays, breakdowns or other extraordinary circumstances;
• if continuity or completion is required within precisely specified time limits.

Length of overtime and maximum

Overtime cannot last longer than 8 hours per week. Therefore, overtime work in Serbia is a maximum of eight hours per week. The working week lasts 40 hours, which means that, together with overtime, it cannot last longer than 48 hours.

Then, the employee’s working day must not last longer than 12 hours. In addition to regular working hours, this also includes overtime, when the working hours are 8 hours.

This means that in addition to the working hours, which usually last 8 hours, the employee can work overtime, but a maximum of 4 hours. At the same time, he may not work overtime for more than a total of eight hours per week.

In the case when the employee works in shifts and when the working hours are organized so that he works a maximum of 12 hours a day (with daily breaks), he can work a maximum of 48 hours with overtime. This working time includes overtime.

Overtime records

In accordance with the Law on records in the field of work, the company is obliged to keep records on employees, as well as on the earnings of employees. Data on working time and its use, including the rate of increase and overtime, are also entered in those records.

On the other hand, the Labor Law also defines the employer’s obligation to keep employee records. For overtime work, he is obliged to keep daily records of employees’ overtime work in Serbia.

How to notifying the employee about overtime work in Serbia?

In situations where overtime is introduced due to circumstances such as force majeure, a sudden increase in workload or other circumstances that require the completion of work that was not planned within a certain period, the employer must make an internal decision or request to introduce overtime. Without that document, there is no reason to treat overtime as such. At the same time, there would be no basis for paying increased wages to employees who worked overtime.

In such unforeseen circumstances, the company is obliged to inform the workers about the schedule and changes for the introduction of overtime. The deadline for notifying employees cannot be shorter than 48 hours.

When can’t overtime be done?

Overtime work in Serbia cannot be performed in the following situations:

• for part-time jobs – an employee who has reduced working hours due to the risky jobs he performs cannot work overtime (for difficult, tiring and health-damaging jobs);
• if there is a finding by the competent health authority that overtime work can worsen the employee’s health condition;
• for an employee who is younger than 18 years old;
• an employee during pregnancy and an employee who is breastfeeding a child, based on the findings of the competent health authority confirming that such work would be harmful to her health and the health of the child.

Exceptions for employees:

• For both employed parents of a child up to three years of age, only one parent can work overtime, with their written consent.
• A single parent who has a child up to seven years of age or a child who is severely disabled can work overtime, only with their written consent.

Calculation of overtime compensation

Overtime work in Serbia is paid additionally. That is, employees who worked overtime are entitled to increased earnings. The increase must be at least 26% of the basis for calculating the increased salary.

Every employee is entitled to remuneration for work performed and time spent at work. It consists of remuneration for work performed and time spent at work, remuneration based on the employee’s contribution to the employer’s business success (awards, bonuses, etc.) and other income based on the employment relationship.

Then, remuneration for work performed consists of basic salary, part of the salary for work performance and increased salary. The basis for calculating the increased salary is the basic salary determined in accordance with the law, general act and employment contract.

The employer is obliged to pay overtime in an increased amount of at least 26% from only one part of the salary, i.e. from the basic salary.

When it comes to the minimum wage, the basis for calculating the increased wage is the minimum wage of the employee.

Redistribution of working time and overtime

Redistribution of working time and overtime work in Serbia should not be mixed.

The company may redistribute working time in the following cases:

• when the nature of the activity requires it,
• when required by the work organization,
• when better use of labor resources is needed,
• when a more rational use of working time is needed,
• when it is necessary to complete a certain job within the established deadlines.

Redistribution of working time is carried out so that the total working time of the employee in a period of 6 months during the calendar year is on average no longer than the contracted working time of the employee. Redistribution of working time is not linked to the calendar year. It can last longer than 6 months, and at most 9 months.

In case of redistribution of working time, working time cannot last longer than 60 hours per week. Redistribution of working time is not considered overtime.

For an employee who agrees to work longer than the average working time in the redistribution of working hours, those working hours are calculated and paid as overtime.

Annual leave and overtime work in Serbia

An employee has the right to use a full annual vacation, in proportion to the number of days after a month of continuous work, starting from the day the employment relationship with the employer is established. During annual leave, he is also entitled to holiday pay, i.e. compensation. We have written about the annual vacation in detail.

An employee cannot waive the right to annual leave. That right cannot be denied or replaced by monetary compensation, except in the case of termination of the employment relationship. Therefore, the employer should not ask the employee to work overtime while on vacation. On the other hand, the employee has no obligation to respond.

Obligations of the employer for overtime work

In addition to the employer’s obligations arising from the employment relationship, which the company has towards its employees, we will also mention the employer’s specific obligations regarding overtime work.

• The company is obliged to keep daily records of employees’ overtime work.
• It is an obligation to take into account the duration of overtime work of employees when creating the employee schedule.
• The employer is obliged to correctly calculate and pay the employee overtime, at least 26% of the base for calculating the basic salary.
• The company is obliged to pay a fine if it does not keep records of overtime work (for a legal entity the fine is from 150.000,00 to 300.000,00 dinars, for an entrepreneur the fine is from 50.000,00 to 150.000,00 dinars).
• If the company commits a violation of an employee working overtime for longer than the maximum length of overtime provided by law, it is obliged to pay a fine between 600.000,00 and 1.500.000,00 dinars.

The accounting agency HLB TM DOO from Belgrade provides a wide range of personnel and administrative tasks related to keeping employee records, including payroll services. Contact us for additional information and terms of cooperation.

The post Overtime Work in Serbia – Basic Rights and Obligations appeared first on HBL.

The total salary calculation for one employee depends on various parameters. When it comes to the minimum wage, it depends on the type of employment contract, the number of working hours in that month, then on the wage increase and other conditions.

And in this case, there is a difference between gross and net minimum wage.

The difference between net and gross salary

Gross salary and net salary in accounting do not have the same meaning.

Net salary

An employee receives a basic salary for his work, which is obtained as a product of the price of work and the number of working hours. The price of work per one working hour for the year 2025 is 308,00 dinars. The price per hour is in the net amount.

The worker’s salary can be increased, so when the increase is added to the basic salary, the net salary is obtained. The amount of wages paid to the worker at the end of the month, as wages, is net wages. The right to pay salary is one of the basic rights of every employee.

READ MORE: WHAT ALL PAYROLL SERVICES SHOULD INCLUDE >>

Gross salary

Gross wages are the total cost of the employer for the salary of one employee. That is, it is the sum of net salary and all the employer’s obligations to the state. Obligations include income tax and mandatory social security contributions. All together, it is included in the salary (salary) of the employee.

The employer has the obligation to pay the full amount for taxes and contributions, which in professional terminology are defined as contributions at the expense of the employee and contributions at the expense of the employer.

For the exact amount of all monthly obligations related to salary, we recommend hiring an accounting agency that can do a detailed calculation of net salary with taxes and contributions.

Gross minimum wage

When calculating wages for the minimum wage, the basic wage is always increased by tax and contributions at the expense of the employee and at the expense of the employer. In fact, the gross minimum wage consists of the minimum wage, taxes, contributions and all increases to which the employee is entitled based on the employment contract.

This is how the procedure for obtaining the gross minimum wage, which is valid for LLC companies and for entrepreneurs who keep business books, looks like.

The gross amount of the basic minimum wage or gross 1

When taxes and employee contributions are added to the net amount, the gross amount of the basic minimum wage or gross 1 is obtained (net salary increased by income tax and employee contributions).

Gross minimum wage or gross 2

When increments are added to the gross amount of the basic minimum wage – past work, hot meal, holiday pay, work during holidays, overtime or night work, etc., the basis for calculating the gross minimum wage is obtained.

Then, when taxes and employer contributions are added to this base, the gross minimum wage is obtained – gross 2.

According to the Law on Social Contributions, the monthly basis of contributions cannot be lower than the lowest prescribed basis for calculating social contributions. The new lowest prescribed basis for the calculation of social contributions for the year 2025 was determined in the amount of 45.950,00 dinars. Then, the new highest monthly basis for the year 2025 on which tax and social contributions are calculated and paid is the amount of 656.425,00 dinars.

For the purposes of calculating and calculating salaries, we recommend that you consult an accounting agency that can provide professional accounting services and help with the calculation of costs for employees.

Minimum wage in Serbia in 2025

When calculating contributions, as well as the gross minimum wage, the following provisions of the Law on Social Contributions should be taken into account:

1. if the lowest prescribed basis for calculating social contributions is higher than the gross minimum wage, the contributions are calculated on the lowest prescribed basis;
2. if the lowest prescribed basis for calculating social contributions is less than the gross minimum wage, the contributions are calculated on the amount of the gross minimum wage.

First, it is necessary to determine the net minimum wage, in order to then calculate the basic gross minimum wage. As of February 1, 2025, the new non-taxable salary amount applied for salary calculation is 28.423,00 dinars per month and will be valid until January 31, 2026. year. The applicable wage tax rate is 10%.

Based on the formula and non-taxable amount, a table of net minimum wage and basic gross minimum wage for 2025 was formed, individually by month:

The post What is the Difference Between Gross and Net Salary in Serbia? appeared first on HBL.

These are two rights related to maternity leave, the names of which are often combined in practice:

1. first – it is the right to maternity leave (for the period after childbirth and recovery);
2. second – it is the right to leave from work for child care (for the period of child care).

Maternity leave and child care leave can last a total of 12 months (365 days). It is valid for maternity leave for the first child, but also for maternity leave for the second child.

Every employed woman (employee giving birth) during maternity leave and absence can also receive  salary compensation, in accordance with the Labor Law. The fee is paid in gross amount.

Therefore, below we will explain the two types of rights of these to benefits during maternity leave.

1. Compensation for earnings during maternity leave and leave from work to care for a child is income earned by women employed by legal entities and individuals. Therefore, they have concluded an employment contract or an established employment relationship with the employer.
2. Other allowances for the birth and care of a child are monetary incomes received by mothers who are self-employed.

When does maternity leave start and how long does it last?

Maternity leave can start no earlier than 45 days before childbirth. It is obtained based on the findings of a gynecologist, and no later than 28 days before the due date.

When it comes to the length of maternity leave, it can last a maximum of 3 months, starting from the date of delivery. Those three months make up one month before childbirth and two months after it. Sick leave is related to childbirth and recovery.

Leave from work to take care of the child lasts for the remaining nine months. It builds on the maternity leave and continues continuously, without the obligation to submit additional documentation. Therefore, only when the maternity leave expires does the right to leave from work to take care of the child continue. It lasts for the rest of the period until it expires 365 days, from the beginning of the opening of the maternity leave.

Therefore, maternity leave and child care leave together last for a total of one year (for the first, second child). For the third, fourth and each subsequent child, the duration is different.

Exceptions may be tragic situations, such as the death of a newborn before the end of maternity leave or if the newborn is stillborn. Then the employed mother still has the right to use this right.

How is maternity leave opened?

Maternity leave is opened on the basis of a doctor’s remittance, that is, on the basis of the findings of the competent health authority. The employer is only obliged to make a decision on the opening of maternity leave and leave from work for the sake of child care, and a remittance (report on temporary inability to work) is sufficient for the decision.

The status of the employee does not change during maternity leave and child care leave. When she takes sick leave, she remains in employment, which can be seen in the records of the Central Register of Mandatory Social Insurance (CROSO).

The payment of salary compensation for maternity leave is borne by the budget of the Republic of Serbia.

Leave from work to care for a child

After the end of the maternity leave, the mother who is employed has the right to leave from work to take care of the child. It lasts the rest of the period until the end of 12 months, that is, until those 365 days have passed since her maternity leave began.

During maternity leave and leave from work to take care of the child, she has the right to receive salary compensation.

The father’s right to maternity leave and leave from work to take care of the child

When asked whether the father has the right to take leave from work to take care of the child, the answer is yes. Both mother and father can use the right. In addition, one of the adoptive parents, foster parent, guardian of the child can also exercise this right.

Maternity leave benefits only the mother. The father has the right to use paid leave based on the birth of his wife.

The cases when the child’s father can take leave from work to take care of the child are:

• when the mother leaves the child,
• if the mother dies,
• if the mother is prevented from using this right for other justified reasons, and some of them may be serving a prison sentence, serious illness, and the like.

In an exceptional situation, maternity rights can pass to the father, which is the case if the mother dies.

Let’s conclude. The father can be absent from work to take care of the child and receive compensation even when the mother has an established employment relationship (when she is employed), but also when she is unemployed, i.e. when she is not employed. Unemployment is not a requirement.

In order to be able to use the leave, it is necessary to have a written agreement with the child’s mother.

Maternity leave and childcare leave for the third child

A mother, i.e. an employed woman, for the third, fourth and each subsequent newborn child can also use maternity leave and the right to leave from work for child care. The leave lasts longer, unlike the leave used for the first and second child.

For the third, fourth and each subsequent newborn child, maternity leave and child care leave last a total of two years. They are consecutive, so the leave can last a total of 24 months

Clarification.

After the expiration of the maternity leave, the employed mother is absent from work to take care of the child until the end of the two-year period. The starting date of the maternity leave is also counted as the starting date.

If an employee gives birth to three children (or more), she immediately realizes the right to maternity leave and leave for two years.

As for the father’s right to take leave, it is the same as in the case of the first or second child. When the mother justifiably cannot use maternity leave and leave, the father has the right to use work leave to take care of the child.

Pay during maternity leave

In accordance with the Law on Financial Support of Families with Small Children, compensation for salary during maternity leave and leave from work to care for a child is determined based on the sum of the monthly bases on which contributions have been paid on all incomes that are considered earnings, for the period of the last 18 months (a year and a half days) preceding the first month of pregnancy leave, or maternity leave, if no pregnancy leave was used.

The monthly amount of wage compensation during maternity leave must not be less than the established minimum salary. The payment of the maternity allowance is made directly to the current account of the working mother, and the payment is made by the state.

The right to leave from work to take care of the child and compensation if the mother is an entrepreneur

If the mother is an entrepreneur, i.e. if she opened her own company, the right to leave from work to take care of the child and compensation can be exercised by the child’s father, who is employed by the employer. In other words, if the child’s mother is a self-employed person, the father has the right to leave to take care of the child and receive compensation.

The father of the newborn can also exercise this right. When the mother is the owner of the family farm and has the status of a person who performs the activity independently.

The father can exercise this right to leave to take care of the child only after the completion of three months of the child’s life, and for the remaining period of up to one year (the remaining nine months), for the first and second child. The third and every subsequent child has the right to a period of up to two years.

The wage compensation base is determined on the basis of the sum of the monthly bases on which the contributions to incomes that have a salary character were paid, for the last 18 months preceding the first month of leave due to complications related to the maintenance of the mother’s pregnancy, i.e. the birth of a child if the leave due to complications was not used in connection with the maintenance of pregnancy.

Other allowances for the birth and care of a child from August 1, 2023.

Other benefits based on the birth and care of a child and special care of a child, the mother has the right to use for a child who was born on August 1, 2023 and later. He can receive compensation if:

• performs activities independently (entrepreneur);
• is the holder of a family agricultural holding that has the status of a person who independently performs activities.

The mother’s income can be:

• on the basis of the contract on temporary work – casual jobs;
• based on the service contract;
• based on the author’s contract;
• on the basis of the contract on the rights and obligations of the director outside the employment relationship.

Compensation for earnings based on the birth and care of a child is realized for a period of 12 months (one year) for the first and second child, and for two years for the third and each subsequent child.

The base for other allowances based on the birth and care of a child is determined in proportion to the sum of the monthly bases on which contributions were paid, except for the base of contributions for income that has the character of earnings, for the last 18 months preceding the first month of leave due to complications related to maintaining pregnancy. or maternity leave, if the leave was not used due to complications related to maintaining the pregnancy, i.e. the day of the child’s birth.

Termination of maternity leave

The employer with whom the mother is employed during maternity leave and child care leave has no right to terminate her employment during that period.

During pregnancy and maternity leave, the employer cannot terminate the employment contract or declare her redundant.

In other words, the company as an employer is obliged to have a maternity woman on the company’s employee records.

On the other hand, she has the right to change her employer and look for another job. If there is a change, the payment of salary compensation will not change, nor will it be stopped. He will also exercise this right at his new employer, and then continue to receive salary compensation for the remaining period of leave he uses.

Another right that every pregnant woman has is to submit a request for the termination of the right to the payment of salary compensation for the period of maternity leave and leave from work for the care of the child, before the expiry of the duration.

For all additional information about maternity leave and personnel issues related to human resources, the accounting agency HLB TM DOO can offer you comprehensive solutions for correct and timely calculation of payroll services. Contact us.

The post Maternity Leave in Serbia – Compensation, Duration, Main Facts appeared first on HBL.

The working relationship between the employer and the employee is based on the fulfillment of mutual obligations, because it regulates the rights, obligations and responsibilities, which applies to both the employer and the employees.

Termination of the employment relationship may occur at the employee’s will (consensual – by agreement or termination by the employee). Also, the reasons for resignation can be justified, regardless of the will of the employer or employee, but also if the company decides to fire the employee of its own free will.

In addition to all of the above, it should be pointed out that there are also situations that are not considered a justified reason for resigning.

Below is more detail on this topic, which concerns all the rights and obligations of the employer and the employee in connection with resignation.

When does an employer not have the right to fire an employee?

There are situations when a company with an employee does not have the right to terminate the employment relationship, for justified reasons. During the employment relationship, the employer has numerous obligations, and one of them refers to compliance with the regulations regarding dismissal.

The following is not considered a justified reason for resignation:

• temporary inability to work due to illness, accidents at work or occupational disease;
• use of maternity leave, leave from work for child care and leave from work for special child care;
• serving or completing military service;
• membership in a political organization, trade union, gender, language, nationality, social origin, religion, political or other belief or some other personal characteristic of the employee;
• acting as a representative of employees;
• addressing the employee to the trade union or authorities responsible for the protection of rights from the employment relationship.

Reasons for employment resignation in Serbia – when the company has the right to fire the employee

Termination of employment can occur for a number of reasons, in which case the employer has the right to fire the employee. In addition, termination can occur by agreement (agreement), then independently of the will of the employer or employee, but also if there are justified reasons.

We have written in detail about this topic of how to terminate an employment relationship. We will only list the reasons below.

When it comes to the will, that is, the decision to fire the employee, the final outcome is influenced by justified reasons. The employer has the right to dismiss the employee for the following reasons:

1. the employee’s ability to work or his behavior at work;
2. when the employee commits a violation of his work obligation through his own fault;
3. when work discipline is not respected;
4. when the employer’s need for an employee ceases.

1. The right to dismissal for reasons related to the employee’s ability or his behavior at work are

• failure to achieve work results or if the worker does not have the knowledge and ability to perform work;
• if the employee has been legally convicted of a criminal offense at work or in connection with work;
• if he does not return to work within 15 days from the end of the suspension of the employment relationship or from the end of the unpaid leave.

2. The employer has the right to fire the employee when the employee commits a violation of the work obligation through his own fault

• if he negligently or recklessly performs his work duties;
• if he abuses his position or exceeds his authority;
• if he uses labor resources inappropriately and irresponsibly;
• if he does not use or does not use the provided means or equipment for personal protection at work;
• if he commits another violation of his work obligation.

The employer has the right to terminate the employment contract even when the employee does not respect work discipline

• if he unjustifiably refuses to perform tasks or execute orders;
• if he does not submit a certificate of temporary incapacity for work;
• if he abuses the right to leave due to temporary inability to work;
• due to coming to work under the influence of alcohol or other intoxicants (refers to the use of alcohol or other intoxicants during working hours);
• if he provided incorrect information that was decisive for employment;
• if an employee who works at jobs with increased risk refuses to perform an analysis of the health capacity assessment;
• if he does not respect work discipline.

The employer’s right is also justified needs

• technological redundancy;
• if the employee refuses to conclude an annex to the employment contract (due to a change in the basis for determining basic salary, work performance, salary compensation, increased salary and other income).

Rights and obligations of employees upon termination of employment

Depending on the way of termination of the employment relationship, the rights and obligations that must be respected also differ. It is a legal obligation defined by law.

Rights and obligations when an employee resigns from the employer

• Every employee has the right to terminate the employment relationship on his own initiative.
• He is obliged to comply with the written form of that notice, as well as the notice period. He must write a notice of termination, and as for the notice period, it lasts between 15 and 30 days (at least 15 days).
• He has the right to a salary, that is, to have the company calculate and pay him his salary in the gross amount.
• When an employee resigns from his employer, he cannot exercise the right to the payment of unemployment compensation, which is paid by the National Employment Service.

Rights and obligations of the employee in case of mutual termination of the employment relationship

• The worker has the right to agree with the employer on the termination of the employment relationship.
• Termination by agreement must be in writing.
• It is the employee’s obligation that his declaration of will on dismissal be in the form of a written agreement.
• In case of mutual termination of employment, if registered with the National Employment Service, that person does not have the right to receive unemployment benefits from the NES.
• He has the right to receive salary for the period when he was employed.

The employee’s right when the employment relationship is terminated independently of his will

In addition to the calculation of the basic salary, the worker can exercise the right to financial compensation when he loses his job. Earnings are calculated up to the date when the employee was employed.

It is a compensation in case of unemployment by the NES, if the resignation occurs against the will of the employee. The right to monetary compensation is realized in the following cases:

• resignation by the employer, as technological redundancy;
• resignation if the employee does not achieve work results, that is, he does not have the necessary knowledge and skills to perform the tasks he is working on;
• upon expiry of the contract for which it was based (fixed-term contract),
• expiration of the duration of temporary and casual jobs, as well as the duration of probationary work.

Obligations of the employer in connection with resignation

• The employer is obliged and obligated to fire the employee only for legally justified reasons for giving notice.
• Before dismissing an employee, the employer is obliged to carry out the legal dismissal procedure. Must warn the employee in writing that there are reasons that may lead to dismissal. He is also obliged to give him a period of at least 8 days for the employee to give an explanation in writing.
• The grounds for termination, facts and evidence indicating that the conditions for termination have been met, as well as the deadline for responding to the warning must be stated in the notice of termination.
• The decision on the termination of the employment contract must be delivered to the employee in the prescribed manner – in writing. It must contain an explanation, an instruction on the legal remedy and be delivered personally to the employee (at the company’s premises or at the address of residence).
• If he fails to personally deliver the decision on resignation, he must write a written note, which is displayed on the employer’s notice board, and eight days from the date of publication it is considered to have been delivered.
• The employer has the obligation to calculate the employee’s salary, as well as to pay all unpaid wages, salary allowances and all other income that he received up to the date of termination of the employment relationship, no later than within 30 days.
• When it comes to unemployment compensation, the obligation to inform the worker in writing about the consequences that will have when exercising the right to unemployment – in the event of an agreed termination of the employment relationship. More precisely, he must inform him in writing that by mutual termination of the employment relationship he does not exercise the right to the payment of monetary compensation by the National Employment Service.
• When it comes to mutual dismissal, it is obligatory to have a signed agreement with the employee on the termination of the employment relationship.
• Compensation for unused annual leave when the employment relationship is terminated, an employee who did not use annual leave in whole or in part must be paid monetary compensation instead of using annual leave.

Legal consequences for illegal resignation or termination of employment

An employee who has been dismissed can protect his rights in two ways. He has the right to file a lawsuit against the employer for illegal termination of the employment contract. Then, he has the right to apply to the labor inspection. If the labor inspection determines that there is a violation of the employee’s rights, it can issue a Decision on postponing the execution of the decision on the termination of the employee’s employment contract.

In this way, legal proceedings are initiated to determine whether there was a legal relationship for the illegal termination of employment.

1. If a court decision determines that the resignation was illegal, the employee must return to work. In addition, he must be paid damages, as well as seniority, i.e. to calculate contributions for mandatory social insurance for the period during which he did not work.
2. If, during the court proceedings, it is determined that the employee’s employment has been terminated without a legal basis, and he does not request to return to work, the employer must calculate and pay him compensation in the amount of a maximum of 18 of his wages.
3. If it is established that the dismissal took place without a legal basis, and during that procedure the employer manages to prove that there are still circumstances that justifiably indicate that the continuation of the employment relationship is not possible, the court will reject the employee’s request to return to work. He will only receive compensation in the amount of twice the amount he can earn if he were to return to work.
4. In the event that during the procedure it is established that there was a reason to terminate the employment relationship, but that the employer acted contrary to the provisions of the law prescribing the procedure for the termination of the employment relationship, the employee’s request to return to work may be rejected. He will receive damages up to six times his earnings.

Accounting agency HLB TM DOO from Belgrade provides professional and reliable accounting services, adapted to your needs. We can help you if you need this type of support, i.e. accurate and correct payroll services.

The post Employment Resignation in Serbia – Rights and Obligations appeared first on HBL.

The employer is legally obliged to provide workers with the right to use a meal allowance. He is not obligated only if he provided them with food in some other way. When we say employees, we mean persons who, as a type of employment, have an established employment relationship.

There are two possibilities for reimbursing employees for the expenses they will have for food during work, and they are:

1. that the employer provides meals to the employee during working hours at his own expense,
2. to pay compensation to employees for meals during work.

This means the following – if the company does not provide food to the employee during work, it is obliged to pay him compensation for the cost of food during work.

What the Law does not foresee and does not impose as an obligation is the amount of compensation that will be paid for these needs. Therefore, below follows a detailed explanation regarding this topic.

The height of a meal allowance

The Labor Law obliges the employer to express food costs in value. In other words, the cost of a meal allowance must be expressed in money. However, the amount of the meal allowance is not precisely defined by law, but can be determined by the employer arbitrarily.

E.g. a decision can be made that the remuneration for a meal allowance be a fixed amount, then the amount on a daily basis per meal, as a percentage in relation to some related data (average salary) or some other way according to what the employer decides.

The company is not obliged to determine either the maximum or minimum amount for a meal allowance. Practically, it does not limit it. The employer has the freedom to independently determine the amount of compensation for a meal allowance, and in practice this is usually in accordance with the company’s financial capabilities.

He has certain obligations, which relate to the following:

• that the amount, conditions, as well as the method of providing or paying compensation for a meal allowance are defined by the general act of the company (regulations, collective agreement), as well as by the employment contract with employees;
• the amount of the meal allowance for all employees must be stated in the payroll.

Obligations of the employer regarding compensation for a meal allowance

We wrote about all the obligations of the employer when he establishes an employment relationship with the employee. A meal allowance is one of them, but the amount of compensation for a meal allowance is nowhere defined as an obligation of the employer.

What is an obligation is another – to declare, calculate and pay the amount that the employer decides for reimbursement of expenses, as well as to express that amount in money. So, how much is the reimbursement of expenses for a meal allowance is defined by the company’s general act, rulebook or employment contract.

Also, there is no mandatory minimum or maximum for the payment of these expenses, but all conditions, method of payment and the amount of the meal allowance must be regulated by a general act with the employer (collective agreement or labor regulations) or a labor contract with each employee.

What is the compensation for a meal allowance is the decision of the employer and there is no exact amount to be paid as an obligation, but it is an obligation to pay and that the amount of the compensation for a meal allowance, the conditions and the method are specified in the act.

The amount of compensation for a meal allowance should be the same for all employees, regardless of the employee’s professional qualification, title and workplace.

The right of employees to payment of work-related expenses

Employees, that is, persons in an employment relationship, have certain rights guaranteed by law. This includes the right to a meal allowance.

The other expenses that arise in connection with work and for which the employee has the right to realize based on the employment relationship include:

• the cost of coming and going from work, equal to the price of a public transport ticket, if the company has not provided its own transport to the employee and thus pays the travel expenses;
• expenses for the time spent on a business trip in the country;
• expenses for the time spent on a business trip abroad;
• the cost of accommodation and food for work and stay in the field, if the company did not provide accommodation and food free of charge;
• expense for vacation leave;
• expenses for meals during work, if the company has not provided this right in another way (meal allowance).

The compensation for a meal allowance is earnings

In accordance with the Labor Law, compensation for a meal allowance is considered earnings. This means that a meal allowance, i.e. compensation for food expenses during work, is subject to the obligation to calculate and pay taxes and contributions, as a type of income that is treated as earnings.

This is important to point out because of some specific situations that arise, such as when the employer is obliged to pay the employee salary compensation, for example, during the use of annual leave, paid leave, sick leave and the like. Then he has the obligation to pay the salary in the average amount for the last 12 months, and that average includes all earnings that are treated as salary, which includes the allowance for a meal allowance.

When the right to a meal allowance is exercised – on which days

Compensation for a meal allowance is realized only for the days when the employee worked (every day he was at work).

The right to a meal allowance cannot be exercised for those days when the employee did not work, i.e. when he was not at work. For example. during sick leave, annual vacation, paid leave, as well as unpaid leave.

Meal allowance and minimum wage

To make this question clearer, ie. whether employees who receive the minimum wage have the right to a meal allowance, we will only remind you what the wage consists of.

In accordance with the Labor Law, earnings consist of:

• salary for work performed and time spent at work (basic salary, part of salary for work performance and increased salary);
• earnings based on the employee’s contribution to the employer’s business success (rewards, bonuses, etc.);
• other income.

In addition, the Law defines that an employee has the right to receive a minimum salary for standard performance and time spent at work. The minimum wage has a specific treatment and the amount is determined based on the minimum price of work, time spent at work, as well as taxes and contributions paid from the wages.

An employee who receives the minimum wage can exercise the right to an increase in wages (when it comes to work during a holiday that falls as a non-working day, for night or overtime work, and the like). Then, he can exercise the right to reimbursement of expenses, as well as to other incomes that are considered earnings.

In this regard, an employee who receives the minimum wage is also entitled to reimbursement of expenses for a meal allowance. That amount is paid to him in addition to the amount that covers the minimum wage. In other words, the costs of the meal allowance allowance are not included in the amount of the calculated minimum wage, but they are added to the amount of the minimum wage.

For additional questions and information about payroll services in Belgrade, please contact us. The accounting agency HLB TM DOO is available for all the necessary information in order to adapt the existing solutions to your business.

The post Reimbursement of Costs for a Meal Allowance – Rights and Obligations appeared first on HBL.

We have written in detail about all topics related to rights and obligations from the employment relationship. On the one hand, when it is concluded, the employee acquires certain rights guaranteed by law, and this further creates an obligation for the employer, due to which he is under a legal obligation to comply with it all.

In the following, we deal in detail with this topic, which is related to the employer’s obligations after hiring an employee.

1. Employer’s obligation to sign a labor contract with employees in Serbia

1.1. Obligation 1 – signing the employment contract

The company in Serbia and Belgrade has the obligation to sign the employment contract with the person it intends to employ in advance (signs before the date of employment).

In other words, he must not hire a worker who does not have a signed employment contract. If the inspection check determines that the worker is not employed, the company is obliged to immediately hire him for an indefinite period.

1.2. Obligation 2 – application for social insurance

Registration of workers for social insurance is mandatory for all companies in Serbia. Applications can no longer be made retroactively, i.e. backward in date, but only with a forward date or with the date when the employment relationship is established.

Applications for social insurance can be submitted in person at the RFZO branch, as well as through the portal of the Central Register of Social Insurance.

The employment contract is signed in 3 copies – one remains with the employee, and the other two go to the employer. The contract must be kept at the company headquarters or in the business premises where the employee works.

1.3. Obligation 3 – the obligation not to diminish the rights of the employee

In accordance with the contract, the company is obliged to comply with all rules and obligations related to the employment relationship. The mutual rights and obligations between the employer and the employee are determined by the rulebook or specific act of the employer, and in addition to the employment contract, there may be other legal acts – the company’s work rulebook or collective agreement.

They may define both the entry into the employment relationship and the rights and obligations upon resignation of the employment relationship.

The employer in Serbia must strictly take care that the general act regulating mutual relations does not contain provisions that reduce the rights of workers, as well as that it does not contain provisions that define less favorable working conditions or other rights, in relation to what is defined by law.

2. Obligations of the employer after establishing an employment relationship

In the following, we will list all the employer’s obligations in Serbia that practically come into force immediately after the employee starts working, and they certainly concern those rights and obligations for employees that are related to the establishment of an employment relationship.

Those are:

• that the employee is paid a salary, i.e. income (net, tax and contributions, until the end of the current month for the previous month);
• to provide the employee with working conditions, to organize safety, life and health protection at work, as well as to take all measures to prevent this right from being violated;
• to inform employees about working conditions, work organization, business rules in the company, as well as rights and obligations arising from labor regulations and regulations on safety and protection of life and health at work (preferably all in writing);
• to ensure the performance of appropriate tasks for which the employee is employed in accordance with his contract;
• to seek the opinion of the trade union regarding important issues, and if there is no formed trade union in the company, then it is obliged to seek the opinion of a representative appointed by the employees.

3. The employer’s obligation to observe working hours

The employer is obliged to respect the restrictions regarding working hours. It cannot require the worker to work overtime more than the maximum working time, which is established in accordance with the Serbian law. Full time is 40 hours per week.

There are several exceptional situations when an employee has to work overtime and longer than full time, and these are the following:

• Force Majeure;
• Sudden increase in workload;
• Other cases when it is necessary to finish work that was not planned within a certain period.

Overtime cannot last more than eight hours a week. A worker cannot have working hours longer than 12 hours a day, which includes overtime. Overtime is paid at least 26% more than the basic salary.

When it comes to respecting working hours, it should be emphasized that the schedule is determined by the employer. He can change the schedule of the employee, he has the right to do so, but it should be emphasized that he also has the obligation to inform him about the new schedule, i.e. the change. He is obliged to notify him at least five days in advance. When it comes to overtime work, he is obliged to inform the worker about the changes at least 48 hours in advance.

4. Employer’s obligation to provide rest for employees

The employer in Serbia has the obligation to provide employees with rest. Refers to:

• daily rest – during work;
• rest between two working days;
• rest on a weekly basis;
• vacation.

Daily rest

A daily break during working hours lasts 30 minutes and it is the employee’s right to take a break. It refers to working hours lasting at least 6 hours per day.

An employee whose working hours are at least 4 hours a day, but less than six, has the right to a 15-minute rest during the day.

A worker whose working hours are longer than 10 hours a day has the right to a daily rest of 45 minutes.

Rest between two working days

An employee has the right to rest between two working days lasting at least 12 hours continuously, within 24 hours. When making a schedule, especially if working in shifts, the obligation to have 12 hours of rest between two working days must be respected.

Weekly rest period

On a weekly basis, the worker has the right to rest for at least 24 continuous hours (this is independent of the rest between two working days, because it is added). In this regard, the employer is obliged to provide one non-working day per week for each employee, which does not necessarily have to be Sunday or weekend.

Vacation

An employee has the right to an annual vacation of at least 20 working days. This right is exercised for work during the entire calendar year. If he works for less than one year, he receives a proportional part of that right for annual leave. It is one-twelfth vacation for each month of work in the calendar year in which the employment relationship is established or in which the employment relationship ends.

5. The employer’s obligation to provide the employee with paid and unpaid leave

During the employment relationship, employees have the right to paid and unpaid leave from work.

When it comes to absences with compensation, these are the following cases in Serbia:

• a maximum of 5 working days during the calendar year due to marriage, wife giving birth and serious illness of a member of the immediate family;
• paid leave of 5 working days due to the death of a member of the immediate family;
• 2 consecutive days when it comes to voluntary blood donation, and that blood donation date is also counted.

We wrote in detail about this topic – paid leave from work.

Also, the right to unpaid leave is granted, in which case all rights and obligations arising from the employment relationship are suspended. Unpaid leave from work is used in the following cases:

• due to military service;
• due to being sent to work abroad by the employer;
• due to temporary referral to work at another employer;
• due to election or appointment to a public office, the performance of which requires temporary cessation of work for the employer;
• due to serving a prison sentence, i.e. imposed security measures, educational or protective measures, for a duration of up to six months.

We also wrote in detail about unpaid leave – unpaid leave from work.

6. The employer’s obligation to provide compensation to the employee during the absence

In addition to the regular salary earned during work, the employee has the right to compensation for salary during absence from work. It refers to the following:

• compensation for time absent from work on a holiday that is prescribed as a non-working day;
• allowance for annual leave;
• compensation for paid leave;
• compensation during a military exercise or when it is necessary for the employee to respond to the call of a state authority;
• compensation for sick leave (absence from work due to temporary inability to work).

We wrote in detail about this topic – the employee’s right to compensation.

7. Employer’s obligation to pay expenses and other income

The employment relationship guarantees the employee rights concerning the reimbursement of certain expenses, which on the other hand becomes an obligation of the employer that he must fulfill. These include:

• reimbursement of expenses for arrival and departure from work, equal to the price of a public transport ticket,
• reimbursement of expenses during official travel – per diem in the country and abroad;
• reimbursement of costs for accommodation and food for work and stay in the field, if a decision is not made that these costs are borne by the company;
• compensation for a hot meal – for nutrition during work;
• holiday allowance – for using annual leave;
• severance pay when the employee retires, at least in the amount of two average salaries;
• severance pay if the employee is dismissed as redundant, at least in the amount of a third of the salary for each year of work in that company;
• reimbursement of expenses for funeral services in the event of the death of a member of the immediate family and vice versa, to members of the immediate family in the event of the death of an employee;
• compensation for damages due to an injury at work or in the case of an occupational disease.

If you have doubts or any questions, you can contact us. The expert team of the accounting agency from Belgrade HLB TM DOO can provide you with support and help with questionable information related to employment law, as well as services related to salary calculation Serbia.

The post All Obligations of the Employer towards the Employees in Serbia appeared first on HBL.

Relevant regulations define rights, obligations, and responsibilities in employment relations. The employment relationship between the employee and the employer is governed by the Labor Law. Additionally, provisions defined by special laws are applied, and their legal relationship is also defined by a collective agreement, work regulations, and an employment contract.

The rest of the text provides more detailed information on employees’ rights, obligations, and responsibilities based on employment.

Fundamental Rights of Employees After Establishing the Employment Relationship

Throughout the employment relationship, employees are entitled to certain rights guaranteed by law. Similarly, they must fulfill their work duties, obligations, and responsibilities stipulated by the Labor Law. On the other hand, the employer also has certain obligations to ensure workers’ rights can be realized.

Both the employee and the employer are required to comply with legal provisions. Additionally, it should be emphasized that when establishing the employment relationship, all employee rights during work engagement are predefined, usually through an employment contract, company regulations, or other general acts. Alongside rights, all obligations and responsibilities of the employee and the obligations of the company towards the employees are defined.

Next, we will first list the rights of the workers and then provide explanations:

• Right to appropriate remuneration;
• Right to safety and health at work;
• Right to health protection;
• Right to protection of personal integrity and dignity;
• Rights in case of illness, reduced or lost ability to work, and old age;
• Right to material security during temporary unemployment;
• Right to other forms of protection, by the law and general act, or employment contract;
• Special protection of specific categories of individuals.

Responsibilities for the Employer

The obligations and responsibilities of the employer relate to creating conditions for employees to realize their guaranteed rights.

The employer is obligated to:

• Pay wages or salary to the worker for the work performed;
• Ensure working conditions for employees and organize work to be safe and without danger to life and health at work;
• Inform employees about working conditions, work organization, rules related to respecting work organization, business, terms, and regulations regarding the fulfillment of contractual and other work obligations;
• Inform employees about rights and obligations under other regulations (regulations in the field of safety, life protection, and health at work, by the Law on Safety and Health at Work);
• Provide employees with the performance of tasks determined by the employment contract;
• When required, seek the opinion of the union;
• If there is no union in the company, seek the opinion of the representatives designated by the employees.

The Basic Obligations of Employees in Employment

Employees in the company have the following obligations:

• To conscientiously and responsibly perform work tasks and duties assigned to them;
• To respect the organization of work and business operations within the employer, as well as the conditions and rules of the company related to fulfilling contractual and other obligations;
• To inform the employer about significant circumstances that may affect or could affect the performance of duties specified in the employment contract;
• To inform the employer about any potential danger to life and health and the occurrence of material damage.

# Right to Earnings

The first and most important right is earnings. Employees are entitled to a certain salary for their work with the employer. This consists of payment for the work done and time spent at work, earnings based on the employee’s contribution to the employer’s business success (awards, bonuses, etc.), and other income related to the employment relationship.

They have the right to at least the minimum wage (no less than that). The salary is paid in gross – net earnings + taxes and social contributions.

The employer must usually pay the salary once a month (this depends on the employer, as it happens in practice that it is paid twice a month). The deadline for payment for earnings from the previous month is by the end of the current month. When calculating, employees must receive a salary calculation for each month.

Employees may also have other rights related to earnings if provided for by the general act or employment contract:

• Right to increased earnings;
• Compensation for expenses (transportation to work, holiday pay, hot meal, etc.);
• Other income (severance pay, anniversary award, solidarity assistance, additional insurance, etc.);
• Right to paid leave;
• Right to unpaid leave.

# Right to Occupational Safety and Health for Employees

Employees have the right to occupational safety without endangering their lives and health. The employer must ensure this and implement preventive measures in all work activities and processes to prevent compromising workplace safety, life, or health.

In the event that an employee suffers an injury or harm at work or related to work, the company is obligated to compensate for the damage incurred.

# Right to Healthcare Protection for Workers

Employees have the right to mandatory healthcare protection throughout their employment. This right is exercised through contributions paid for obligatory social insurance deducted from wages and salaries. The employer is obligated to settle these contributions.

Mandatory health insurance includes:

• Insurance for illness and non-work-related injuries;
• Insurance for work-related injuries and occupational diseases.

# Other Rights in Case of Illness, Disability Reduction or Old Age

These rights are also granted based on social insurance in cases where the employer regularly pays contributions for mandatory social insurance. Then, if the employee is temporarily unable to work and absent from work due to illness, they are entitled to wage compensation for the first 30 days. In that case, the company must pay them wage compensation. If they are temporarily unable to work due to injury, they are entitled to compensation for injury at work or occupational illness. They also have the right to wage compensation for the entire duration of temporary incapacity for work due to injury.

# The Right to Protect Personal Integrity and Dignity of Employees

Employees at work have the right to protect their integrity and dignity. This encompasses prohibiting discrimination in any capacity (direct and indirect), preventing harassment and unwanted behavior, and forbidding sexual harassment.

# Material Security During Temporary Unemployment

This right means the following: when temporary unemployment occurs, an individual who was previously employed becomes unemployed due to the termination of their employment. Employment terminates if the contract expires due to the employee’s declaration as redundant and other reasons in accordance with the law. In these cases, the right to financial compensation based on paid insurance contributions for unemployment is realized.

# Special Rights of Certain Employees

Special rights for specific categories of employees apply to youth, parents (guardians, adoptive parents, foster parents), persons with disabilities, and mothers. Here are the details:

• Employed women have the right to special protection during pregnancy, childbirth, and absence for childcare – absence from work due to pregnancy and birth, as well as absence from work for childcare for a total duration of 365 days; the right to paid leave during the day for health checks related to pregnancy; the right not to perform strenuous tasks that may be harmful to her or the child; the right not to work overtime or at night if such work is potentially hazardous; during pregnancy, maternity leave, childcare leave, and special childcare leave, a female employee cannot be terminated (the employment relationship is extended until the expiration of the leave entitlement);
• The right to special protection for childcare – after the expiration of maternity leave and absence from work for childcare for a child in need of special care due to illness, one of the parents has the right to leave or to half of the full-time work for a maximum of five years of the child’s life;
• Protection of parents and mothers, with written consent – a single parent of a child up to seven years of age or a child with severe disabilities may work overtime – at night; one of the parents of a child up to three years of age may work overtime – at night;
• Employees under 18 years of age – are not to perform heavy physical work, work underground, underwater, at great heights, or perform hazardous tasks exposed to radiation or dangerous substances that may cause illness or increase health and life risks;
• Employees with disabilities and health impairments – have the right to perform tasks according to their work capacity.

For any additional questions or clarifications, feel free to contact us. HLB T&M Consulting Belgrade Accounting Agency provides salary calculation services, and we can also assist you with further advice or information.

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