This information is derived from the State Department's Office of Investment Affairs, Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov
Last Published: 2/26/2018

According to the Statistical Office, Serbia has a total labor force of approximately 3.1 million people, of which 2.7 million are employed. In the fourth quarter of 2016, the formal employment rate was 45.5 percent and the informal employment rate was 20.9 percent. The unemployment rate in the last quarter of 2016 was 13.8 percent compared to 17.7 percent in last quarter of 2015. Youth unemployment remains relatively high at 31.2 percent. The leading sector for employment is the government and public administration, followed by trade, transport, agriculture, forestry and fishery, manufacturing, and construction.

Labor costs are relatively low in Serbia, especially compared to European averages. In January 2017, the average net take-home salary was approximately $360 per month. Minimum wage is approximately $190 per month. Investors routinely cite favorable labor costs, as well as a highly educated, multi-lingual workforce as advantages to doing business in Serbia. Almost 59 percent of the workforce has completed secondary education, while 25 percent have completed higher education.

Serbia amended the Labor Law in 2014. The amendments simplified procedures for hiring and dismissing workers, and changed rules for collective bargaining and the extension of collective agreements to non-negotiating parties. The law also changed severance payment requirements so that the employer pays severance based on the years of service with that specific employer, rather than on the employee’s total years of employment.

The official mechanism for tripartite labor dialogue between government, employers and labor is the Social and Economic Council, an independent body with representatives of the government, the Serbian Association of Employers, and trade unions. The Council is authorized to conclude an umbrella collective bargaining agreement at the national level covering basic employment conditions for all companies in Serbia. Additional information about the Council is available on their website.

Serbia has ratified all eight International Labor Organization core conventions including Forced Labor (No. 29), Freedom of Association and Protection of the Right to Organize (No. 87), Right to Organize and Collective Bargaining (No. 98), Equal Remuneration (No. 100), Abolition of Forced Labor (No. 105), Discrimination (No. 111), Minimum Age (No. 138), Worst Forms of Child Labor (No. 182).

The Department of Labor’s report on the World Forms of Child Labor in Serbia can be found online on their website. The Human Rights Report on Serbia is available on their website.

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