Incentives for attracting foreign experts to work in Serbia
In June 2022, the “Regulation on criteria for granting incentives to employers who employ newly settled in the Republic of Serbia“(“Official Gazette of RS, No. 67/2022”) came into force and represents an important measure for employers to adapt to new business conditions in an internationally competitive market during the period of inflation. In addition to that, one of the biggest intentions of subject incentives is also the improvement of the demographic picture in the Republic of Serbia.
This Regulation specifies the criteria for granting incentives to employers who employ newly settled persons in the Republic of Serbia, for whom there is a need that cannot be easily met in the domestic labor market.
For the purposes of this Regulation, newly settled persons are considered to be foreign citizens, domestic repatriates, as well as persons educated abroad, from the work area where there is a shortage of professional manpower, all in order to meet the needs of economic activity in the Republic of Serbia.
The condition for receiving incentives is that the newly settled person is a natural person who did not reside in the Republic of Serbia for 180 days in the period of 24 months preceding the day of concluding the employment agreement and with which the employer has concluded an employment agreement for an indefinite period of time, with full working hours with a monthly basic wage of at least RSD 300,000.00, in accordance with the Labour Law.
Having all previously said in mind, this Regulation is suitable for everyone, both foreign employers and domestic employers who plan to invest their money in the Serbian economy.
The incentive will thus cover 70 percent of the calculated and paid payroll tax for one or more employees and 100 percent of the calculated and paid contributions for mandatory pension and disability insurance.
This, as stated in the Regulation in more detail, refers to payments made for the newly settled employee, starting from 01 July 2022 and ending on 31 December 2028. Regardless of the stated period, the employer shall have rights to the incentives for the maximum period of 60 months.
Additional information regarding the subject Regulation you may find by the insight in the text of the Regulation (https://www.neobilten.com/uredba-o-kriterijumima-za-dodelu-podsticaja-poslodavcima-koji-zaposljavaju-novonastanjena-lica-u-republici-srbiji/)