Cost of an employee in Serbia (2026)
What an employee really costs an employer in Serbia: gross salary plus mandatory employer social contributions.
On a gross salary of RSD 200,000 per month in Serbia, an employer pays about RSD 230,300 in total once mandatory employer social contributions of 15.2% on top of the gross are included.
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How salary is taxed in Serbia
Income tax in Serbia is a flat 10% on taxable income.
Employees also pay social contributions of around 19.9% of gross salary.
A tax-free allowance of about RSD 410,652 per year is deducted before income tax.
The standard VAT rate is 20%.
Frequently asked questions
What does it cost to employ someone in Serbia?
On top of the gross salary, an employer in Serbia pays mandatory social contributions. The total cost of employment is the gross salary plus those employer contributions.
Are employer contributions the same as salary deductions?
No. Employer contributions are paid by the company in addition to the gross salary, while employee deductions (income tax and social contributions) are taken out of the gross to leave the net take-home pay.
Employer-contribution rates are approximate and may be capped or vary by region and sector.
Approximate 2026 estimate. Simplified model, verify before relying on it. Not tax advice.
Rates updated June 2026