Tax

Although the taxable person is the employee, the employer is responsible for calculating and withholding tax.

The tax rate on salary is 10% rate, while the taxable base is gross salary deducted by non-taxable monthly amount of 25.000 RSD (ca. 213 EUR).

Social security contributions (SSC)

Employers are responsible for calculating and withholding SSC for both employer and employee.

SSC on Employee:

Pension and disability: 14%

Health: 5.15%

Unemployment: 0.75%

SSC on Employer:

Pension and disability: 10%

Health insurance: 5.15%

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The base for SSC is the gross salary within the limits below. The minimum monthly base for SSC is set at 35% of the average monthly salary reported in Serbia. The maximum monthly base is limited to an amount equivalent to five times the average monthly salary reported in Serbia.

The minimum monthly base for SSC is RSD 40.143, while the maximum monthly base is RSD 573.470.

When we put these figures for the net salary of 1000 EUR, the calculation is below:

The table below shows the total cost of net salaries of 500, 1000, 2000, 3000 and 8000 EUR.