• Effective January 1, 2020, the minimum salary for foreign workers in Serbia has increased to RSD 172.54 net/hour, up 11.1 percent from 2019.
  • Salary levels for locally-hired foreign workers increased to RSD 27,606.40 – 31,747.36 net/month, depending on the amount of applicable working hours per month.
  • Foreign workers typically receive salaries well above this threshold. 

The situation

Effective January 1, 2020, the minimum salary in Serbia has increased to RSD 172.54 net/hour, up 11.1 percent from 2019. Salary requirements for locally-hired foreign workers depend on the amount of applicable working hours per month as determined by the government and are affected as follows:

Working hours per month Prior salary level Current salary level

184 (January, July, December)

RSD 28,575.20 net/month

RSD 31,747.36 net/month

176 (March, April, June, September, October)

RSD 27,332.80 net/month

RSD 30,367.04 net/month

168 (May, August, November)

RSD 25,469.20 net/month

RSD 28,986.72 net/month

160 (February)

RSD 24,848 net/month

RSD 27,606.40 net/month

  • Impact. The impact of these changes is limited since foreign workers typically receive salaries well above these amounts.
  • Unaffected categories. As before, foreign workers remaining on home employment contract are not subject to a salary requirement.
  • Exchange rate. The exchange rate at the time of publication of this alert is 1 RSD to 0.01 USD.

A closer look

  • Existing employees. Employers of work permit holders must increase foreign nationals' salaries to comply with the new rule, if applicable.
  • Initial and renewal applications. Employers of foreign nationals seeking to obtain or renew a work permit on or after January 1, 2020 must increase foreign nationals' salaries to comply with the new rule. Immigration applications that do not meet the minimum salary will be refused.
  • Pending applications. Employers of foreign nationals with pending work permit applications as of January 1, 2020 must increase foreign nationals' salaries to comply with the new rule. Immigration applications that do not meet the minimum salary will be refused.

Reminders on other requirements

  • Benefits and allowances. As before, benefits and allowances may not be included in the minimum salary calculation.

Background

Over the past years, salary increases between seven and 11 percent are typical for Serbia.

Looking ahead

Serbian authorities are rolling out the streamlined application process as announced in October 2019. Slight amendments may be forthcoming as the new process is applied in practice. Fragomen will report on relevant changes.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.