Do You Have to Pay Yourself a Salary as Director of Your Serbian d.o.o.?
No — Serbian law does not require the director of a d.o.o. to be employed by the company or to draw a salary. But if you own the company and are registered as its director, social contributions are due on the minimum base whether you pay yourself or not: RSD 17,980 a month in 2026, roughly €153. The only question is which of three setups fits you, and each has a different price.
This matters for foreign founders more than for locals, because the usual way out — already being employed somewhere else in Serbia — rarely applies to you.
The rule that catches owner-directors
Article 48 of the Labour Law lets a director work under an employment contract or without one, under a separate management agreement.
The catch is in the contributions law. A founder or member of a company is an insured person if they work in it, with or without an employment relationship — and work includes representing the company on the basis of registration in the companies register. Being listed at the Business Registers Agency (APR) as legal representative is enough. No contract, payslip or revenue is needed for the obligation to start.
The base is at least the minimum monthly contribution base, RSD 51,297 in 2026, at the full self-employed rates:
| Contribution | Rate | Per month (RSD) |
|---|---|---|
| Pension and disability | 24% | 12,311 |
| Health | 10.3% | 5,284 |
| Unemployment | 0.75% | 385 |
| Total | 35.05% | 17,980 |
The company calculates and pays this by the 15th of the following month. It applies to a dormant company too: the trigger is your registration as director, not turnover.
Three ways to set it up
Figures are for 2026, for a month with 176 working hours, EUR at roughly 117.5 RSD.
| A. Owner-director, no contract, no pay | B. Employment at minimum wage | C. Hired director on a management agreement | |
|---|---|---|---|
| Who it suits | founder who lives off dividends | founder who needs a payslip | company run by someone who is not an owner |
| What the director receives | nothing | RSD 65,296 net | RSD 56,560 net on a RSD 100,000 gross fee |
| Taxes and contributions | RSD 17,980 | RSD 36,341 | RSD 43,440 (withheld from the fee) |
| Total monthly cost to the company | RSD 17,980 (~€153) | RSD 101,637 (~€865) | RSD 100,000 (~€851) |
| Pension base | 51,297 | 88,265 | 80,000 |
| Statutory leave, sick pay, notice | no | yes | only if written into the agreement |
Option A is where most single-owner companies start. You are insured, you build a pension record at the minimum base, and you take money out as dividends once there is profit — see salary vs dividends for that comparison.
Option B is ordinary payroll: 10% wage tax above a RSD 34,221 monthly allowance, 19.9% employee and 15.15% employer contributions, on a minimum wage of RSD 371 net per hour. Test other salary levels in the salary calculator.
Option C is for a director who is not a shareholder. The fee is taxed as “other income”: a 20% flat cost allowance, then 20% tax and 24% pension contribution on the rest, plus 10.3% health contribution if the person has no other health cover. A director employed elsewhere in Serbia skips the health part and nets RSD 64,800.
Do not combine C with a zero fee. In a 2018 opinion (011-00-1137/2018-04) the Ministry of Finance held that the agreement with a non-owner director should state a fee, and that tax and contributions are due on it even if the director waives it.
When the minimum charge does not apply
- You are employed by another Serbian employer. Insurance as an employee takes priority over insurance as a founder, so nothing extra is due for your own d.o.o. — until that job ends.
- You own shares but are not the director and do not work in the company. A passive shareholder is not insured on this basis. Whoever is the registered representative then falls under A, B or C.
- You stay covered by another country’s social security under a bilateral agreement with Serbia. A certificate of coverage from your home institution can change the picture. This is decided case by case; settle it before you are entered in the register.
A foreign passport or an address abroad does not by itself remove the obligation. The rule follows the role, not citizenship.
What changes in January 2027
Two enacted changes move Option B: the minimum wage rises to RSD 405 net per hour and the tax-free allowance to RSD 37,369. For a 176-hour month the net becomes RSD 71,280 and the company cost about RSD 110,950 (~€944), up roughly 9%.
Option A will rise too, by an amount not yet known: the minimum base is 35% of the average wage over the previous twelve months and is published late in the year. Details for employers are in minimum wage 2027 and employer cost.
How founders usually decide
- You live abroad and the company is a holding or trading vehicle: A, unless a social-security agreement gives a cleaner answer.
- You are moving to Serbia: look at B. Banks and landlords ask for a payslip, and the basis of your stay may depend on how the company engages you. We do not handle immigration, but the company side is on our page about the residence and work permit for company owners.
- A local manager runs the business: C with a real fee, and you stay a passive shareholder.
Whichever you choose, put it in writing. APR registration proves who the director is, not on what terms.
FAQ
Can a foreigner be the director of a Serbian d.o.o.? Yes. There is no citizenship or residency requirement for the director of a d.o.o. The practical points are a qualified electronic signature for filings and the social-insurance status described above.
My company has no income yet. Do I still owe the RSD 17,980? If you are the registered director, an owner, and not insured on another basis, yes. The obligation does not depend on revenue.
Can I switch from A to B later? Yes. You sign an employment contract with the company, register the employment, and from that month contributions are calculated on your salary instead of the minimum base.
How we help
We set this up at incorporation: pick the model, register you with the Central Registry, run the monthly contributions or payroll, and redo the numbers when your situation changes. See our accounting services in Serbia and pricing, or contact us.
Note: general information based on Serbian law and amounts in force in October 2026 (minimum contribution base RSD 51,297; minimum wage RSD 371 net per hour). EUR figures are indicative. Social-insurance status depends on personal circumstances and applicable international agreements — confirm your own case before acting.