Right to salary and employer obligations
One of the fundamental rights of an employee is the right to adequate compensation, while the employer’s basic obligation is to correctly calculate the salary and provide the employee with a salary statement, i.e. a statement of salary compensation.
This obligation exists regardless of whether the salary has been paid in full, partially paid, or not paid at all.
The salary statement is a written document in which the employer clearly shows the method of salary calculation, the period to which the calculation relates, and the total amount. In addition to its informational function, the statement also has evidentiary value and enables the employee to exercise their rights.
It must include:
employer information (name, legal form, registered office, address, tax ID number, registration number, bank account number and bank),
employee information (name, surname, address, personal identification number, bank account number for salary payment), and
calculation details (period, i.e. the month and year to which the calculation refers, number of working hours and absence hours, payment date).
Salary elements must also be included: base salary, bonuses and performance-related pay, taxes and contributions, and the net amount payable.
In the case of salary compensation, the legal basis for the payment must be specified.
Legal deadline for salary payment
The deadlines and payment method are clearly defined: salary must be paid at least once a month, no later than the end of the current month for the previous month.
Example: the salary for September must be paid no later than October 31.
If the salary has not been paid in full or has not been paid at all, the employer must provide the employee with the salary statement no later than the end of the following month. This statement has the force of an enforceable document and allows the employee to initiate compulsory collection.
It may be delivered in written or electronic form, with proof of receipt. If the salary has not been paid at all, the statement must be signed by an authorized person.
Salary may be paid in installments, but at least once per month in the total amount. Taxes and contributions are calculated according to the amounts paid, with the obligation that the employer calculates contributions at least on the minimum monthly contribution base if the first installment is not sufficient.
The final salary is reported for the accounting period in which it was earned, regardless of the timing of the first payment.
Employee registration and deregistration
Before an employee starts working, the employer must register the employee in the Central Register of Mandatory Social Insurance (CROSO), which includes:
pension and disability insurance
health insurance
unemployment insurance
Deregistration must be carried out immediately after the termination of employment. Registration and deregistration allow employees to exercise all rights related to social and health insurance, while also recording the employer’s obligation to pay contributions.
Health insurance and family member rights
Employees are automatically registered for mandatory health insurance when they are registered for employment.
For family members (for example children or spouses), health insurance rights are granted if they are registered as members of the employee’s household. When registering an employee, the employer provides information about family members who use health care coverage.
Salary payment after termination of employment
Special attention should be paid to situations involving termination of employment. All unpaid earnings must be paid no later than 30 days from the date the employment relationship ends.
Salary payment in installments
Salary may be paid in two or more installments, but at least once per month. The law does not prohibit salary payments in installments, regardless of the reason for such payment (for example employer liquidity or internal company practice), but legal deadlines and tax regulations must be respected.
Difference between salary tax and contributions
When salary is paid in installments, it is important to distinguish between salary tax and social security contributions.
Salary tax
The tax-free amount may be applied:
when paying the first installment of salary,
when paying the second (final) installment, or
divided between the payments, but not exceeding the legally prescribed tax-free amount.
The tax-free amount may be used only once per calculation period.
Contributions
If the first installment of salary is lower than the minimum monthly contribution base, the employer must calculate contributions at least on the minimum base.
If the installment is higher than the minimum base, contributions are calculated on the actual amount paid.
When salary is paid in installments, contributions may be calculated at the first payment or adjusted at the final salary payment.
Types of employment contracts
Employment contracts may be:
indefinite-term contracts – standard permanent employment;
fixed-term contracts – with a maximum duration of 2 years in total, including any extensions.
Fixed-term contracts must be clearly defined in written form, specifying the duration, rights and obligations of both the employee and the employer. Any extension of the contract must be recorded and reported in CROSO.
Delivery of the salary statement to the employee
Every employee must receive a salary statement showing the calculation method, the calculation period, and the net amount payable. The statement may be delivered:
in written form (printed payslip), or
electronically, with proof of receipt.
If the salary has not been paid at all, the statement must be signed by an authorized person.
Bonuses and awards as part of salary
Bonuses, awards and meal allowances, when paid in cash, are treated as salary and are subject to the same rules. A meal provided in kind does not represent a monetary payment, but employees must be treated equally.
From a tax perspective, meals provided in kind are the most favorable solution for employers.
Employee transportation
The employer is obligated to provide or reimburse employee transportation costs if this is stipulated in the contract or internal regulations.
Transportation costs may include:
financial reimbursement for public transportation, or
organized transport (for example a company van or bus).
Transportation costs are calculated separately and are subject to record-keeping and tax regulation rules.
Employer misdemeanor liability
Failure to provide salary statements or salary compensation statements, as well as failure to pay salary or minimum salary within the legal deadline, constitutes a misdemeanor.
Employers are also required to maintain monthly records of salaries and compensations for each employee, including gross and net amounts, taxes, contributions, and deductions.
Failure to comply with these obligations constitutes a violation subject to the following fines:
for legal entities: from 800,000 to 2,000,000 RSD
for responsible persons: from 50,000 to 150,000 RSD
for entrepreneurs: from 300,000 to 500,000 RSD
If the employer fails to pay salary after termination of employment, additional and stricter penalties apply.
Redistribution of working hours
Redistribution of working hours means that an employee works longer hours during one period and fewer hours during another.
An employer may introduce redistribution in order to organize work more efficiently, provided that the agreed average working hours are respected.
The maximum redistribution period is 6 months, and it may be extended up to 9 months through a collective agreement.
Recording working hours is mandatory, the fixed monthly salary remains unchanged, and additional pay for night work or public holidays continues to apply.
