Social security contributions in detail
The basis for the calculation of social security contributions in case of employment is the gross amount of salary received by the employee. The minimal basis for the calculation of social security contributions is 35% of the average monthly salary in Serbia paid out in the previous 12 months, starting from October of the current year. The amount of the minimal basis for every year is published by the Ministry of Finance, and the amount for 2019 is RSD 23,921 (EUR 201.93). The maximal basis is five times the average salary in Serbia, calculated in the same manner as the minimal basis, and the amount of the maximal basis is also published by the Ministry of Finance. The maximal basis for 2019 is RSD 341,725 (EUR 2,884.64).
The rates are as follows: pension and disability insurance – 26%; health insurance –10.3%; and unemployment insurance – 0.75%.
Social security contributions are paid by both the employer and the employee (except for unemployment insurance, which is paid only by the employee). For health insurance, the contributions are paid at the same rates by the employee and the employer (meaning 5.15% each); while for pension insurance, the employer bears 12% and the employee 14%. Therefore, the total rate of social security contributions payable by the employer is 17.15% and the total rate of social security contributions payable by the employee is 19.9 %. Accordingly, the aggregate percentage of social security contributions in Serbia is 37.05%.
Author: Karanovic & Partners
Date: March 2019
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.