Hiring and payroll in Serbia

Introduction

The Republic of Serbia, also recognized as Serbia, is a landlocked country in Central and Southeastern Europe. With a population of over eight million, Serbia has a buoyant agricultural sector and is famous for being the largest producer of plums.

Serbia’s Gross Domestic Product (GDP) was worth USD 63.07 Billion in 2021. According to Trading Economics global macro models and analysts expectations, it is expected to reach USD 65.08 Billion by the end of 2022.

According to the Economist, Serbia’s tech industry accounts for at least 6% of Serbia’s GDP, and it continues to grow at a fast pace.

Due to the tech sector growth, global organizations are expanding into Serbia in search of talent and the country’s favorable market. Currently, there are over 45,000 highly-skilled tech professionals in Serbia.

Therefore, this article highlights everything you need to know about hiring a remote team and managing payroll in Serbia.

Hiring employees in Serbia

Serbian employees are famed for being natural problem solvers, and highly-skilled tech talent is abundant in Serbia. Due to the cost-effectiveness, ease of access to highly skilled talent and the high quality of tech talent in Serbia, the country is recognized as a critical outsourcing destination for global organizations.

Serbia’s tech talent pool has a workforce strength of over 45,000 highly skilled professionals. Therefore, organizations planning to hire a remote team have many options and incredible benefits from Serbia.

How to hire employees in Serbia

Organizations planning to hire a remote team in Serbia usually use job portals such as infostud, serijesaprevodom, jooble, indeed.com, and bamboohr.com. Other platforms, such as LinkedIn, are great resources for job placements.

Hiring with an Employer of Record in Serbia

An Employer of Record is a third-party platform that enables global organizations to hire employees and contractors, onboard talent, manage an organization’s payroll and ensure compliance with country-specific employment laws and tax regulations.

The Employer of Record in Serbia helps companies carry out employment-related activities in compliance with Serbia’s employment laws. Also, The Employer of Record in Serbia enables global organizations to hire a remote team, onboard talent, manage payroll and ensure compliance with Serbia’s laws without setting up subsidiaries.

Payroll in Serbia

Organizations with plans to manage payroll in Serbia have an obligation to comply with the country’s employment and payroll laws.

Complying with Serbia’s payroll laws is essential. However, organizations in Serbia have to do everything they can to simplify the process of managing payroll in Serbia in compliance with the country’s laws. In that light, Serbia has two efficient ways to manage payroll.

Establishing subsidiaries to manage payroll in Serbia

Establishing a subsidiary or partnering with a local entity is one of the efficient ways to hire and pay employees in Serbia. With an established and registered subsidiary, an organization has the full rights to carry out all employment-related activities, including managing payroll in Serbia.

Partnering with an Employer of Record in Serbia

An Employer of Record platform provides organizations with all they need and require to carry out business activities in Serbia. By acting as the legal employer on behalf of the organization, they can hire and manage payroll for employees in Serbia.

The Employer of Record offers a simpler alternative to establishing a subsidiary in Serbia, as subsidiary creation can be challenging, time-consuming and resource-intensive

The Cost of Hiring an Employee in Serbia

Organizations planning to hire a remote team in Serbia must take note of the cost and resources it will require. Like every business pursuit, understanding the financial requirements is key to managing growth expectations and helps in efficient planning and structure of the organization.

Therefore, the cost required to hire an employee in Serbia involves the following.

• The subsidiary establishment expenses and cost of running the business
• Acquisition of a legal team
• The employment and payroll platform costs
• Job boards ad placement costs
• Interviews and background checks expenses

Organizations planning to hire a remote team in Serbia can do so at a cost-effective price by partnering with an Employer of Record platform like Skuad. Skuad is a global employment and payroll platform that handles the entire employment lifecycle of organizations in Serbia by managing all employment-related activities and ensuring compliance with Serbia’s employment laws.

Conclusion

An Employer of Record offers the best solution for organizations planning to hire a remote team or manage payroll in Serbia. While expanding into a new country is challenging, an Employer of Record platform enables organizations to hire contractors and full-time employees, onboard talent, manage payroll, and ensure all employment-related activities comply with Serbian employment laws.

Employer of Record platforms like Skuad ensures that organizations can build globally distributed teams quickly and without hassles. To know more about Skuad, book a demo today.