The extension of employment incentives for hiring new employees is no longer just a proposal. Under the adopted amendments to the Law on Contributions for Mandatory Social Insurance, the deadline for using the incentives provided for under Articles 45 and 45v has been extended until 31 December 2028. However, not all of the new rules will start applying at the same time. The Law will apply from 1 January 2027, while most of the amended conditions for these two incentives will only start applying on 1 January 2028. Therefore, employers should distinguish between what changes as early as next year and what they have another year to prepare for.

What starts in 2027 and what starts in 2028:

From 1 January 2027From 1 January 2028Incentives under Articles 45 and 45v extended until the end of 2028.The net number of employees will be compared with the average number of employees over the previous 12 months.The employment incentive for hiring a person with a disability will be linked to state aid rules.The incentive may be used for a maximum of 12 months from the date of hiring.The special three-month registration requirement for trainees is removed.The exception for the Youth Guarantee programme will apply only to persons under 24.New restrictions related to state aid for Articles 45 and 45v will apply.

What applies from 1 January 2027

From the beginning of 2027, the period during which employers can use the two existing incentives will be extended. The general incentive under Article 45 provides for a refund of part of the contributions paid for a newly hired employee, amounting to 65%, 70% or 75%, depending on the number of newly hired employees. The incentive under Article 45v is intended for micro and small legal entities and entrepreneurs who establish an employment relationship with at least two new employees and provides for a refund of 75% of the contributions paid.

Before the amendment, both provisions applied to salaries paid up to and including 31 December 2026. The new Law extends this deadline to 31 December 2028.

In practice, this means that during 2027 employers will continue to be able to use these incentives, while the new eligibility criteria will not yet apply. The conditions relating to registration of unemployed persons, the increase in the number of employees, the duration of the incentive and state aid restrictions will change from the beginning of 2028.

As of 1 January 2027, Article 45b, which regulates the exemption for employers who hire a person with a disability on an indefinite-term employment contract, will also be amended. The exemption from payment of contributions for an employer who hires a person with a disability on an indefinite-term contract will remain in force for three years. The new provision is that, from 1 January 2027, the rules governing state aid control will also have to be taken into account when using this incentive. The adopted amendment does not specify any additional conditions or restrictions in greater detail.

From 2028, the increase in the number of employees will be determined differently

The most important change concerning the incentives under Articles 45 and 45v relates to the method of determining whether the number of employees has increased. From 1 January 2028, an employer will be eligible for the incentive if hiring a new employee increases the net number of employees compared with the average number of employees during the previous 12 months.

This replaces the previous system, which compared the number of employees with the number recorded on specific reference dates. For Article 45, the reference date was 31 March 2014, while for Article 45v it was 31 October 2015. For the incentive under Article 45v, the provisions regulating changes in the number of employees compared with that reference date are also being removed.

At the same time, a time limit is being introduced: an employer will be able to use the incentive for a particular newly hired employee for a maximum of 12 months from the date of employment. Therefore, for employees hired from 2028 onwards, employers will need to monitor both the previous movement in the number of employees and the employment start date of each person for whom the incentive is being claimed.

Conditions for trainees and participants in the Youth Guarantee programme are changing

From 1 January 2028, the special condition under which a person could qualify as a trainee if they had been registered as unemployed with the National Employment Service for at least three months before employment will be removed. The general requirement of at least six months of continuous registration as an unemployed person will remain in the Law.

The age limit for unemployed persons registered in the Youth Guarantee programme is also changing. Until the end of 2027, unemployed persons under 30 years of age who participate in the Youth Guarantee programme do not have to meet the requirement of having been registered with the National Employment Service for at least six months. From 1 January 2028, this exception will apply only to persons under 24 years of age.

These changes apply both to the general incentive under Article 45 and to the incentive under Article 45v.

State aid restrictions will start applying in 2028

From 1 January 2028, the incentives under Articles 45 and 45v will also be subject to the regulations governing state aid control. The Law stipulates that the amount of the incentive based on contributions, together with the incentive provided under the law governing personal income tax relating to the same type of incentive, may not exceed 50% of the payroll costs of the employees being hired, or EUR 5.5 million per employer per year.

Employers will not be entitled to these incentives if they have been ordered to repay state aid or de minimis aid, nor if, under the state aid control regulations, they are considered an undertaking in difficulty.

Therefore, from 2028, it will no longer be sufficient for an employer to check only the conditions relating to the newly hired employee and the number of employees. The employer will also have to take into account its status under state aid rules and the total amount of related incentives.

What employers should check before hiring a new employee

For hires made during 2027, the key change is the extension of the deadline for using the incentives.

If hiring is planned for 2028, several additional factors will need to be checked:

• whether the newly hired employee meets the requirement concerning registration with the National Employment Service;
• whether the hiring increases the net number of employees compared with the average number of employees during the previous 12 months;
• from which date the maximum 12-month period for using the incentive begins;
• whether there are any restrictions relating to state aid or de minimis aid;
• what the total amount of incentives based on contributions and personal income tax is for the same type of incentive.

The Law enters into force on the eighth day following its publication in the Official Gazette of the Republic of Serbia. Therefore, in addition to the application dates, employers should also check the published text of the Law, as well as the regulations and forms relevant to its practical implementation.

In short, 2027 brings an extension of the existing employment incentives, while 2028 introduces a new framework for applying them. This distinction between the two years is particularly important when planning new hires and assessing eligibility for contribution refunds.

(Minimax, 01.09.2026)

https://www.minimax.rs/sr-latn-rs/olaksice-za-zaposljavanje-do-kraja-2028-sta-donose-usvojene-izmene-zakona