Explore the intricacies of Serbia's labor laws and regulations, covering everything from employment contracts to overtime pay and annual leave entitlements. Discover why Serbia stands out as a cost-effective outsourcing destination amidst its unique economic landscape.
Here are some of the employee benefits and rights protected by labor law in Serbia:
- Employers are required to provide a formal employment contract mutually agreed upon by both parties.
- Expatriates must obtain a work permit and either a permanent or temporary residence permit to work in Serbia.
- The standard weekly working hours are 40, with a maximum limit of 60 hours per week.
- Overtime work cannot exceed 8 hours per week, and employees are entitled to a minimum 26% increase in wage for overtime.
- Annual leave must be at least 20 working days.
- Sick leave is considered paid leave, with employees receiving salary compensation.
- Employees have the right to form and participate in trade unions.
- Unemployed individuals are entitled to a monthly allowance from employers for up to 12 months, ranging from a minimum of 22,390 RSD (USD 212) to a maximum of 51,905 RSD (USD 491).
Despite the regulations, the average post-tax income in Serbia remains lower than that of the United States and many other European countries. However, the cost of living is significantly lower compared to other European Union member states, making Serbia a highly economical option for outsourcing.