Minimum Salary Level Increased
January 22, 2020
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At a Glance
- 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.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
