Serbia Hiring Guide
This page covers the key details of employment law and labor practices in Serbia.
If you’re planning to partner with us, take a moment to understand the essentials — types of employment contracts, paid time off, termination rules, and other regulations that may differ from your local workforce.
Serbia is one of Europe’s fastest-growing business hubs, offering a highly skilled workforce, competitive employment costs, and strong employee protections under the Labor Law of the Republic of Serbia.
Here’s everything you need to know about hiring and employing talent in Serbia — fully compliant and worry-free.
Our EmploymentProcess
At Providenca Marketing, we follow a structured and transparent process that allows our clients to evaluate new hires efficiently while in their “onboarding period” and make informed decisions about long-term employment, which in Europe/Serbia have different laws compared to the USA.
- Every new hire starts with a 30-day fixed-term employment agreement. We consider this the “Evaluation Period”. It gives you, the hiring entity, a chance to evaluate the person and their fit, while incentivizing the person to really execute and hit the ground running, early on.
- Before the end of this initial period, we will send the client a Performance Review document.
Performance Review document
The client is required to:
Provide brief feedback on the employee’s performance.
Indicate a decision regarding the employee’s employment status, choosing one of the following options:
Convert to a permanent employment agreement — if the employee is an ideal long-term fit.
Extend the fixed-term agreement for an additional 30, 60, or 90 days — up to a maximum of 24 months — if more time is needed for evaluation.
End the employment — if the employee is not the right fit for the role or company.
The Performance Review must be completed by the defined deadline, which is two days before the expiration of the current fixed-term agreement.
If it is not submitted on time, we will not be able to extend the employment after the existing agreement expires.
Termination & Notice Period
European employment law is more protective of employees compared to U.S. regulations. However, within the first two years of employment — when fixed-term contracts apply — employers still have considerable flexibility to manage and, if necessary, terminate employment relationships in line with Serbian Labor Law. After 2 years, there are rules & laws around terminating or eliminating positions.
Termination of a Fixed-Term Contract
Fixed-term employment contracts in Serbia automatically end upon the expiration of the agreed period.
Once the contract expires, the employer has no further obligations toward the employee unless a new agreement is signed.
Termination options for permanent employment agreements include:
• Performance-related termination: after a documented 30-day Performance Improvement Plan (PIP), during which performance gaps are formally addressed, clear improvement goals are set, and the employee is given a fair opportunity to improve before a final decision is made. At the end of this period, the employer may either continue the employment or proceed with termination, depending on whether the agreed performance improvements have been successfully met.
• Redundancy or layoff: with severance pay equal to one-third (1/3) of the employee’s average monthly salary for each full year of employment.
• Employee resignation: requires 30 days’ written notice.
(applicable to employees who have transitioned from a fixed-term to an indefinite-term contract)
Providenca Marketing’s HR team provides full support and documentation for every termination scenario — helping clients handle sensitive offboarding smoothly while ensuring full compliance and protecting both the business and the employee’s rights.
Equipment& Work Tools
To ensure every employee can start working efficiently from day one, you purchase & provide all essential work equipment as part of the onboarding process.
For every new hire, a laptop is mandatory and is always provided. Before purchasing, we send the client a proposal with two or three recommended laptop options based on the role and technical requirements. Once the client approves the selection, we purchase the laptop locally in Serbia, on your behalf, and you reimburse Providenca, at no mark up.
Key principles
The full cost of the laptop is billed to the client on the next invoice.
All purchased equipment is 100% owned by the client.
Equipment purchased for a specific client is used exclusively by that client’s employees.
If an employee leaves and their laptop becomes available, the same device may be reassigned to a new employee working for the same client/company, whether on the same or a different role. Equipment is never shared or reused across different clients/companies.
Some positions may require additional equipment, such as:
External monitor
Keyboard and mouse
External hard drive
USB-C hub or similar peripherals
Upon the client’s request and approval, we can procure and deliver any additional equipment needed for the role.
Important to note:
Only the laptop is mandatory.
All other equipment is optional and provided solely upon client request and approval.
No equipment is purchased without prior client approval of the cost.
This approach ensures full transparency, clear ownership, and a smooth working experience for both clients and employees.
Time Zone Comparison
Serbia operates on Central European Time (CET, UTC+1) and observes Central European Summer Time (CEST, UTC+2) from the last Sunday in March until the last Sunday in October.
| Location | Time Zone | Offset from Serbia |
|---|---|---|
| New York (EST) | UTC−5 | Serbia is +6 hours ahead |
| Chicago (CST) | UTC−6 | Serbia is +7 hours ahead |
| Los Angeles (PST) | UTC−8 | Serbia is +9 hours ahead |
Understanding these differences helps teams plan meetings and maintain efficient collaboration between the Serbia and U.S. offices.
Working Hours in Serbia
The standard full-time workweek in Serbia is 40 hours, typically spread over five working days (Monday to Friday).
The Labor Law of Serbia clearly defines working hours, overtime, and night shifts to ensure employee protection and full compliance with labor regulations.
Some roles—especially those requiring closer collaboration with U.S.-based teams—may have adjusted working hours to allow for greater overlap with U.S. time zones, meaning employees often start later in the day and finish in the early evening.
You, as the client, would dictate the working hours you desire at the beginning search for a Serbian Employee through Providenca, so we can set the expectation up front to candidates.
Providenca Marketing ensures that all working hours, overtime, and night shifts are tracked and compensated in accordance with Serbian labor law.
Paid Time Off and Public Holidays
Employees in Serbia are entitled to paid leave and holiday benefits, ensuring a strong balance between work and personal life. These rules differ compared to the USA. All leave entitlements are fully regulated by the Labor Law of the Republic of Serbia.
Entitlements include:
Paid annual leave (PTO)
A minimum of 20 working days per year, or 21 days for employees with a seventh level of education (master’s degree or equivalent).
Public and religious holidays
National and religious holidays officially recognized by the Republic of Serbia are paid non-working days.
Orthodox Christian patron saint celebration: 1 paid day off granted only to employees of the Orthodox faith, for celebrating their family’s patron saint (Slava).
Personal leave
5 paid days per year for events such as marriage, childbirth, serious illness, or death of an immediate family member.
Blood donation
2 paid days for each blood donation.
Sick leave
up to 30 days of paid leave covered by the employer; any additional period is paid by the state.
Employees must obtain a medical certificate from a state-authorized physician for each period of sick leave, as well as a confirmation once the leave has ended.
Providenca Marketing ensures all employee leave and absences are tracked, documented, transparent, and processed in accordance with Serbian labor regulations.
Maternity and Paternity Leave
Serbian law provides strong protections for mothers and parents, ensuring both job security and financial support during the parental period.
Maternity Leave
- Maternity leave in Serbia lasts up to one year for the first and second child, and two years for the third and each subsequent child.
- During this period, the employee receives full salary compensation paid by the state, meaning there is no financial cost to the employer.
- In practice, medical leave during pregnancy often begins several months before childbirth, so the total absence from work can extend up to 20 months.
- The first 30 days of leave are paid by the employer, while the remainder is fully covered by the government.
Paternity Leave
- Fathers are entitled to five paid days of leave following the birth of a child.
Providenca Marketing ensures that all maternity and parental leaves are managed and documented in full compliance with Serbian labor law, providing smooth support for both employees and clients.
Payroll, Taxes& Contributions
Providenca Marketing manages all payroll, tax, and compliance requirements on behalf of clients — all included within a single monthly service fee, which depends on the number of employees.
- Payroll is processed monthly, with salaries paid on the 1st of each month for the previous month.
- Client invoices are typically issued around the 22nd of each month and must be paid by the 26th of the same month, covering all employment-related costs for the current month.
- Employer contributions include:
- Pension & Disability Insurance
- Health Insurance
- Unemployment Insurance
- Employee contributions are automatically deducted from the gross salary.
- All social taxes and contributions are paid in full compliance with Serbian regulations.
Why Hire in Serbia with Providenca Marketing
When hiring in Serbia, compliance and local expertise make all the difference.
Providenca Marketing provides end-to-end EOR and recruiting services — combining legal compliance, payroll, and local talent acquisition under one roof.
Why choose us:
- 100% compliance with Serbian labor law
- Recruiting included in the EOR fee
- Transparent monthly pricing, no hidden costs
- Tailored approach for each client
- English-speaking HR and legal team based in Serbia
Ready to Hire in Serbia?
Get in touch with our team to learn how we can help you build your compliant Serbian workforce.
