IMPACT – MEDIUM

The Serbian government has announced that it will increase its monthly minimum wage by 14.3% in Jan. 2023.

Key Points:

  • Beginning Jan. 1, the minimum wage will increase from 201.22 RSD per hour to 230.00 RSD per hour.
  • The new average minimum salary in 2023 will be 40,020 RSD per month.
  • The new minimum wage will be applicable to those starting work on Jan. 1, 2023.

Additional Information: Serbian migration authorities continue to evaluate minimum wage levels and may adjust the wage requirement again before the New Year.

BAL Analysis: Businesses may see a slight increase in labor costs once the new minimum wage takes effect. Employers should take the new wage minimums into account and adjust their budgets if necessary. BAL will provide updates on salary minimums for foreign workers as information becomes available.

This alert has been provided by Berry Appleman & Leiden. For additional information, please contact berryapplemanleiden@bal.com.

Copyright © 2022 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – LOW

What is the change? The Serbian government is introducing a new law, the Law on Foreigners (Official Gazette of RS, No. 24/2018), which introduces changes in the visa procedure (new types of visas, process clarification) and the temporary residence permit procedure (new deadlines, list of documentation, registration of stay, validity period of passports, higher penalties, etc.).

What does the change mean? The new law ensures that TRPs are issued for a period of up to a year rather than six months, reducing the need for renewals, keeping the administrative processing requirements and clarifying procedure details for applicants.

  • Implementation timeframe: Oct. 3.
  • Who is affected: Foreigners who plan to stay in Serbia for a period longer than 90 days in a single six-month period based on the different types of stay.
  • Visas/permits affected: Visa process, TRP process and renewals.
  • Business impact: The new law clarifies processing requirements, visa and TRP procedures and lengthens validity for TRPs.

Background: The Serbian Parliament passed the new immigration law in April 2018, and it went into effect on Oct. 3. For specific nationalities, the new visa D will be required to enter Serbia and start the TRP procedure. The provisions of the new law will ensure the Serbian authorities approve the TRP for the period required in the letter of invitation up to a maximum of one year. The list of procedure steps and documentation clarify rules regarding temporary and permanent residence permits, and registration of stay in Serbia (starting from Nov. 3) will be in force along with the new law. The new law stipulates that TRP renewals may begin in the period of 90 to 30 days before expiration of a valid TRP, and it extends the time necessary to issue the renewed TRP up to 30 days (rather than 15 days).

Analysis & Comments: The new Serbian law is a positive development for companies sending assignees to Serbia and will clarify administrative processing and renewal procedures.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? A new law has created new work permit categories and broadened the list of foreign nationals who must obtain authorization to work in Serbia.

What does the change mean? Foreign nationals working in Serbia are required to obtain work permits after arriving in the country unless they qualify for an exemption. Previously, only foreign nationals working under a Serbian contract were required to obtain work permits.

  • Implementation timeframe: The law took effect Dec. 4, 2014.
  • Visas/permits affected: Work permits.
  • Who is affected:Foreign nationals living or working in Serbia.
  • Impact on processing times:Employers should allow time for processing of work permits for employees who previously were not required to obtain work authorization.
  • Business impact: Employers will need to obtain work permits for their workers, including seconded employees and intracompany transferees who were previously excluded from work permit requirements.
  • Next steps: Employers should contact their BAL attorney to meet the new work permit requirement for their employees and assignees, including foreign nationals who legally worked in Serbia without a work permit before the new law was enacted.

Background: The Law on Employment of Foreigners, which went into effect Dec. 4, created new categories of work permits. Categories include: seconded employees and intracompany transferees; a general category for foreign employees; self-employed foreign nationals; and personal work permits for permanent residents and others. In some categories, foreign nationals are responsible for submitting their own applications; in others, their employers are. In some categories, quotas on how many workers can be hired may eventually apply.

Permit Type Category Applicant Permit Quotas
Work Permit: Special Cases Seconded employees, intracompany transferees. Employer Quotas don’t apply.
Work Permit: Employment Foreign nationals who are not covered by another category; labor market testing required. Employer Quotas may be implemented.
Work Permit: Self-Employment Foreign nationals who own or control a Serbian company. Foreign national No quotas yet, but may be introduced.
Personal Work Permit Permanent residents, refugees, asylees, persons of Serbian origin, immediate family members of Serbian nationals or permanent residents. Foreign national Quotas don’t apply.

The law is significant because now all foreign nationals working in Serbia must apply for work permits unless legally exempt. Exemptions exist for foreign nationals who live in Serbia for less than 90 days in a six-month period and are the owner, board member or legal representative of a business registered in Serbia; are in Serbia to attend business meetings, make business contacts or establish a branch or subsidiary office; are in Serbia for the purposes of procuring goods or to assemble or repair equipment; or are in Serbia for a trade fair or similar exhibition.

BAL Analysis: Serbia’s new law broadens the scope of work permit regulations. Employers should make sure they are in compliance with the new law even for foreign nationals who were legally working in Serbia without a work permit before the new law took effect.

This alert has been provided by the BAL Global Practice group and our network provider located in Serbia. For additional information, please contact your BAL attorney.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.