Establishing and managing a payroll in Serbia
The Eastern European nation of Serbia has experienced significant economic growth in recent years, and it is becoming a popular destination for foreign investment.
If you are interested in expanding your organization into Serbia’s exciting marketplace, then an important step is likely to be setting up a Serbian payroll and start hiring a workforce locally. This process can be long and difficult, potentially causing delays to your expansion and incurring unexpected expenses.
At Horizons, we specialize in helping businesses expand internationally, including into Serbia. Our payroll setup and management services are designed specifically to give clients a faster, more reliable route of entry into Serbian employment and expansion, ensuring you operate in full compliance with local regulations, whether or not you have an entity in the country.
If you have an entity in Serbia
If you have already set up a legal entity within Serbia, our payroll team can take all the complex payroll administration off your hands, helping you employ locally in accordance with local employment laws, managing HR, contracts, and handle any associated administration.
This option is perfect for larger businesses that could benefit from outsourced Serbia payroll and consultancy services.
If you don’t have an entity in Serbia
If you have not registered an official entity in Serbia, we can provide our more comprehensive payroll service, offering our Serbian subsidiary to work as your employer of record in the country. Our Serbia payroll experts can also manage your HR, contracts, legal compliance, and more.
Expanding your business in Serbia with Horizons
Reliable Delivery
We guarantee that all payments will be on time, your data will be secure, and you can be up and running within just 48 hours.
An Established Presence
Our in-country subsidiary will act as employer of record, offering you a presence in Serbia for legal local employment.
Flexible Solutions
Our team will manage all of the admin, payroll, HR, and taxes, so you can focus on building your business in Serbia.
Up-To-Date Compliance
We’ll ensure you stay fully compliant at all times with the laws laid out in Serbia’s business and employment regulations.
A Single Point of Contact
Our centralized service gives you a single point of contact, simplifying the entire Serbia employment process.
Proven Global Expertise
Our in-house teams of payroll and HR experts have already helped all kinds of organizations expand globally.
Serbia payroll guide
Taxation and withholdings in Serbia
Employees and employers in Serbia need to contribute a percentage of salaries to various social funds. For health insurance, they must contribute 6.15% each. For unemployment insurance, they must contribute 0.75% each. For pensions, employers and employees must contribute 17.9% and 19.9% respectively.
The income tax rate in Serbia is progressive, with employees paying a higher percentage of income as they earn more. The rates range from 10% to 20%
The corporate tax rate in Serbia is 15% for most companies.
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Pension and disability
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11.5%
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Health insurance
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5.15%
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Total Employment Cost
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16.65% |
Pension and disability | 14% |
Health insurance | 5.15% |
Unemployment insurance | 0.75% |
Total Employee Cost | 19.9% |
Entitlements and terminations rules in Serbia
Employees in Serbia are generally entitled to between eight and 30 days of notice prior to termination, but the exact length depends on how long the employee has been with the company and the terms stated in the employment contract.
Employees may also be entitled to severance payments in some cases, which is linked to the employee’s salary and length of service.
How to establish a Serbia payroll
Establishing a payroll in Serbia for local employment can be a complex process. Firstly, your organization will generally need an in-country entity to act as employer of record for any employees. You will then need to closely follow the relevant business and employment regulations and administrative procedures, which can be very time-consuming.
Alternatively, you can outsource your payroll setup and management to Horizons. We can provide our Serbian subsidiary to act as employer of record for your new hires, so you don’t even need to have a registered entity in Serbia. Additionally, we can establish your payroll and handle all the ongoing administration and compliance work, giving you the freedom to expand into the country more efficiently.
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Your all-in-one solution for payroll outsourcing and Serbia expansion
Horizons’ Serbia payroll, PEO, and employer of record services enable your business to begin trading in Serbia in as little as 48 hours, whether or not you have a legal entity in the country, and could even save as much as 80% in expansion costs.
At Horizons, we can also take care of your organization’s payroll, expenses, benefits, and more in Serbia. Additionally, we will cover your HR duties, as well as employment and tax compliance work. And as the only global PEO with a dedicated in-house recruitment department, Horizons can rapidly find, recruit, and onboard your workforce in Serbia.
