Salaries in Serbia

In order to deal with the topic of salaries in Serbia, it is necessary to state the source of that information in advance. The text that follows is not the subject of our subjective assessment but represents information on salaries in Serbia that was collected and processed by the Statistical Office of the Republic of Serbia.

The Statistical Office of the Republic of Serbia is a state body of the Republic of Serbia that performs professional tasks related to the adoption of programs, organization and implementation of statistical surveys, ie the development of methodology, collection, processing, statistical analysis and publication of statistical data; preparation and adoption of uniform statistical standards; development, maintenance and use of republic administrative and statistical registers; formation and maintenance of a system of national accounts; cooperation and professional coordination with bodies and organizations authorized to conduct statistical surveys; cooperation with international organizations for the purpose of standardization and ensuring comparability of data, as well as other tasks determined by law.

Average salary in Serbia

According to the Statistical Office of the Republic of Serbia, the average gross salary calculated for September 2020 amounted to 82,515 dinars, while the average salary without taxes and contributions (net salary) amounted to 59,698 dinars.

The median net salary for September 2020 amounted to 45,817 dinars, which means that 50% of employees earned up to the stated amount.

The average salary in Serbia in September 2020 are presented in Serbian currency (in dinars) in the following tables:

  Salaries Salaries without taxes and contributions
IX 2020 I–IX  2020 III quarter IX  2020 I–IX  2020 III quarter
In total 82515 81936 82143 59698 59286 59412
Earnings of employees 82948 82332 82564 60029 59590 59735
Earnings of employees outside employment 53607 54057 53517 37572 37887 37509
Salaries of employees in legal entities 88041 87148 87601 63781 63162 63456
Earnings of entrepreneurs and their employees 44713 45030 44981 31760 31841 31879
Public sector 94197 93744 93880 67658 67345 67433
Outside the public sector 77456 76724 77064 56250 55729 55942
  Salaries Salaries without taxes and contributions
Dinars Nominal index Dinars Nominal index
IX 2020 I-IX 2020 IX 2020 I-IX 2020 IX 2020 I-IX 2020 IX 2020 I-IX 2020
VIII 2020 I-IX 2019 VIII 2020 I-IX 2019
In total 82515 81936 102 109.5 59698 59286 102 109.4
Earnings of employees 82948 82332 102 109.4 60029 59590 102 109.3
Earnings of employees outside employment 53607 54057 102.5 108.1 37572 37887 102.5 108.1
Salaries of employees in legal entities 88041 87148 102 109.6 63781 63162 102 109.6
Earnings of entrepreneurs and their employees 44713 45030 100.9 111.7 31760 31841 101.2 111.1
Public sector 94197 93744 101.8 111.3 67658 67345 101.8 111.2
Outside the public sector 77456 76724 102.1 108.9 56250 55729 102.1 108.8

To calculate the salaries in Euro, just divide the amounts in dinars with 118.

Minimum wage

The minimum wage of labor is an economic category and its determination is based on the parameters provided by the Labor Law:

  • employment rate in the labor market;
  • growth rate of gross domestic product;
  • movement of consumer prices;
  • productivity trends and average wage trends in the Republic;
  • existential and social needs of the employee and his family expressed through the value of the minimum consumer basket.

The minimum wage of labor is determined by the decision of the Social and Economic Council of the Republic of Serbia.

The minimum wage amounts about 260 EUR net, or 400 EUR gross (total cost).

Salaries in Serbia from the angle of income tax

The thing that probably interests employers and employees the most is the taxation of salaries in Serbia. In accordance with the Law on personal income tax, the object of taxation is:

  • salary earned on the basis of labor relations, defined by the Labor Law,
  • agreed compensation and other income earned by performing temporary and periodical jobs,
  • paid personal salary of the entrepreneur,
  • employee income earned by working with a domestic employer and paid by the party who is considered to be related to the employer
  • employee benefits such as income.

Income benefits are:

  • vouchers;
  • securities, except for shares acquired in the process of ownership transformation;
  • cash receipts;
  • goods;
  • achieved by making or providing benefits, debt forgiveness, as well as covering the taxpayer’s expenses with monetary compensation or direct payment.

Such other benefits are:

  • usage of a business vehicle and other means of transport for private purposes;
  • usage of residential buildings and apartments that are owned by the employer or at the disposal of the employer on the basis of the lease or other basis;
  • premiums for certain types of voluntary insurance, as well as pension contributions to the voluntary pension fund, which the employer pays for employees

Salaries in the sense of the Labor Law are considered to be one that includes taxes and contributions paid from salaries (gross I). The payroll tax rate is 10% of gross 1 salary.

Salaries in Serbia from the angle of social contributions

In addition to taxes in Serbia, there is a legal obligation to calculate and pay contributions for mandatory social and health insurance.

In Serbia, the following types of contributions are mandatory:

  • for mandatory pension and disability insurance – 25.5%;
  • for mandatory health insurance – 10.3%;
  • for unemployment insurance – 0.75%.

The legal nature of salary in relation to other income

Salary is the wage that comes from an employment contract.

Other incomes according to the Law on Personal Income Tax represent incomes that do not originate from employment. This type of income is most often realized through a work contract, which is also a manager engagement agreement.

The difference between salary and other income is reflected in the different tax rates for such income. Salary is taxed at a rate of 10% while other income is taxed at a rate of 20%.

Another income that is taxed at a rate of 20% is the income of freelancers.

In this regard, it should be noted that there is no obligation to pay health insurance if the employee, on the basis of another employment relationship, already pays health insurance.

Salaries in Serbia as one of the reasons for investing in Serbia

If you are thinking of investing in a business in Serbia, you can see our text about it. One of the reasons why investors decide to invest in Serbia is salaries in Serbia.

Compared to other European countries, salaries in Serbia are among the lowest.

Compared to other Balkan countries, salaries in Serbia are in the middle of the scale.

The following table lists Central European, Eastern and South-East European countries with average net salaries:

Country Net salary
Austria 2885
Slovenia 1175
Greece 1116
Croatia 910
Czech Republic 900
Poland 860
Slovakia 831
Hungary 755
Romania 682
Bulgaria 554
Montenegro 527
Serbia 507
Bosnia and Herzegovina 492
Northern Macedonia 436
Albania 356
Moldova 316
Ukraine 288

Salaries and remote work

Remote work (work out of the office) is specially regulated by Labor Law. Calculation of salaries and all above mentioned is the applicable to remote workers. In the case of remote work employers prefer to use special software solutions and  tools for time tracking software for remote workers in order to calculate working time as basis for the salary calculation.

If you have an additional question related to this topic, feel free to contact us. Also, we recommend that you read our text 30 Reasons to invest in Serbia and Bookkeeping services in Serbia.

Our team of tax experts is at your disposal for all questions.

Salaries in Serbia



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