Serbia's National Assembly has approved amendments to the Personal Income Tax Law that lift the monthly non-taxable amount for salary tax and extend relief for employers hiring new staff until 2028.
Serbia’s National Assembly has adopted the Law on Amendments and Additions to the Personal Income Tax Law, raising the monthly non-taxable amount for salary tax from RSD 34,221 to RSD 37,369 for full-time employees.
Part-time workers receive a deduction in proportion to their working hours. Where employment is split between two or more employers, each applies a proportional deduction, and the combined total cannot exceed RSD 37,369 per month. For posted employees whose tax is remitted by a domestic company under Article 99, paragraph 3, the tax base is the amount paid by that company to the foreign employer as reimbursement for labour costs. The minister of finance will prescribe the detailed procedures.
The relief for employers hiring new staff under Articles 21v and 21d is extended from 2026 to 2028, while the upper age limit for eligible recruits drops from 30 to 24. The requirement that the employee be considered a trainee for at least three months is removed. Relief may be claimed for up to 12 months from hiring, provided the hire increases net headcount against the average of the previous 12 months.
Combined tax and social security contribution relief for the same incentive cannot exceed 50 per cent of wage costs for newly hired employees, capped at EUR 5.5 million per employer annually. Employers ordered to repay state aid, or classed as “undertakings in difficulty”, cannot claim the incentives. The revised rules in Article 2 (paragraphs 2–11) and Article 4 (paragraphs 2–12) apply from 1 January 2028.
Under Article 33a, sole proprietors (preduzetnici), flat-rate entrepreneurs (paušalci) who lose that status and must keep accounting books, and agricultural entrepreneurs can opt for a personal salary (lična zarada). They must notify the Tax Administration in writing by 15 December for the period starting on 1 January of the following year, or within 15 days of losing flat-rate status. Annual consumer price index adjustments to the non-taxable amount under Article 12a, paragraph 1, will begin in 2028.
The law enters into force on the eighth day after publication in the Official Gazette of the Republic of Serbia and generally applies from 1 January 2027.
