Serbia

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1922, implemented in 1937.

Current laws: 2003 (pension and disability insurance) and 2004 (social insurance contributions).

Type of program: Social insurance system.

Coverage

Employed and self-employed persons including farmers, and contract workers.

Source of Funds

Insured person: 11% of covered earnings.

The minimum monthly earnings used to calculate contributions are 35% of the national monthly average gross wage in the previous three months.

The maximum monthly earnings used to calculate contributions are five times the national monthly average gross wage in the previous month.

The national monthly average gross wage is 55,505 dinars (February 2012).

Self-employed person: 22% of covered income.

The minimum monthly income used to calculate contributions is 35% of the national monthly average gross wage in the previous three months.

The maximum monthly income used to calculate contributions is five times the national monthly average gross wage in the previous month.

The national monthly average gross wage is 55,505 dinars (February 2012).

Employer: 11% of covered payroll (temporary reduced rate for newly hired workers, workers older than age 45, and workers younger than age 30).

The minimum monthly earnings used to calculate contributions are 35% of the national monthly average gross wage in the previous three months.

The maximum monthly earnings used to calculate contributions are five times the national monthly average gross wage in the previous month.

The national monthly average gross wage is 55,505 dinars (February 2012).

Government: Guarantees cash benefits; covers any deficit; contributes as an employer. Finances medical benefits and work injury and occupational disease benefits for pensioners.

Qualifying Conditions

Old-age pension: Age 65 (men) or age 60 (women) with at least 15 years of coverage; age 53 and eight months with at least 40 years of coverage (men) or age 53 with at least 35 years of coverage (women); at any age with at least 45 years of coverage.

Disability pension: The insured must be younger than the pensionable age and assessed as incapable of all work (total disability). The required contribution period increases with age: one year of coverage if the disability began before age 20; two years if aged 20 to 24; three years if aged 25 to 29; and at least five years if aged 30 or older.

There is no minimum qualifying period for a disability resulting from a work injury or an occupational disease.

Cash compensation for body impairment: Paid for a body impairment resulting from a work injury or occupational disease. The insured must be assessed with at least a 30% impairment.

Constant-attendance supplement: Paid if the insured requires the constant attendance of others to perform daily functions.

Survivor pension: The deceased was a pensioner or had at least five years of coverage.

Eligible survivors include a widow aged 50 and 6 months or older (a widower aged 55 and 6 months or older), disabled, or caring for a child younger than age 15 (age 26 if a student, no limit if disabled); a dependent mother aged 60 or older or disabled; a dependent father aged 65 or older or disabled; children younger than age 15 (age 26 if a student, no limit if disabled); and dependent grandchildren, brothers, and sisters.

The widow(er)'s pension does not cease on remarriage.

If a survivor receives a pension in their own right, the survivor must choose to receive only one pension.

The payment of survivor's pension is suspended if the beneficiary is working in insured employment or performing self-employed activity.

Benefits are payable abroad under reciprocal agreement.

Old-Age Benefits

Old-age pension: The pension is based on the number of years of contributions, the ratio of the individual's wage to the average wage, and the value of the general point.

The value of the general point is 658.32 dinars.

Schedule of payments: Pensions are paid twice a month; once a month for pensioners who were previously self-employed.

Benefit adjustment: Benefits are adjusted every six months, in April and October, according to changes in the cost of living.

Permanent Disability Benefits

Disability pension: The pension is based on the degree of disability, the number of years of contributions, the ratio of the individual's wage to the average wage, and the value of the general point. The full permanent disability pension is paid with a 100% disability.

The value of the general point is 658.32 dinars.

The required number of years of insurance depends on the age of the insured when the disability began. The number of years of insurance differ for men and women.

Cash compensation for body impairment: A monthly benefit is paid.

Constant-attendance supplement: A monthly benefit is paid.

Schedule of payments: Pensions are paid twice a month; once a month for pensioners who were previously self-employed.

Benefit adjustment: Benefits are adjusted every six months, in April and October, according to changes in the cost of living.

Survivor Benefits

Survivor pension: 70% of the pension the deceased received or would have been entitled to receive is paid for one survivor (140% for a full orphan); 80% for two survivors (160% for full orphans); 90% for three survivors (180% for full orphans); or 100% for four or more survivors (200% for full orphans).

The minimum survivor pension is the old-age pension calculated based on 20 years of coverage.

Benefit adjustment: Benefits are adjusted every six months, in April and October, according to changes in the cost of living.

Funeral grant: The cost of the pensioner's funeral is paid to the person who paid for the funeral, up to 150% of the average pension paid in the last quarter before the pensioner's death.

Benefits are paid abroad under reciprocal agreement.

Administrative Organization

Ministry of Labor and Social Policy (http://www.minrzs.gov.rs) provides general supervision.

Republic Fund for Pension and Disability Insurance (http://www.pio.rs) administers benefits.

Ministry of Finance–Tax Administration (http://www.poreskauprava.gov.rs) collects contributions.

Institute for Social Insurance (http://www.zso.gov.rs) coordinates the implementation of international social security agreements.

Sickness and Maternity

Regulatory Framework

First law: 1922.

Current laws: 2002 (families with children), 2004 (social insurance contributions), 2005 (health insurance), and 2005 (labor).

Type of program: Social insurance system.

Coverage

Cash sickness and maternity benefits: Employed and self-employed persons.

Medical benefits: Employed and self-employed persons, farmers, pensioners, registered unemployed persons while receiving a cash benefit, persons older than age 65, pregnant women, persons with mental or physical disabilities, social assistance beneficiaries, and children up to age 15 (26 if a full-time student).

Voluntary coverage for medical benefits is available.

Special system for military personnel.

Source of Funds

Insured person: 6.15% of covered earnings; pensioners, 12.3% of the pension; voluntarily insured, 12.3% of covered declared earnings (medical benefits).

The minimum monthly earnings used to calculate contributions are 35% of the national monthly average gross wage in the previous three months.

The maximum monthly earnings used to calculate contributions are five times the national monthly average gross wage in the previous month.

The national monthly average wage is 55,505 dinars (February 2012).

Self-employed person: 12.3% of covered income.

The minimum monthly income used to calculate contributions is 35% of the national monthly average gross wage in the previous three months.

The maximum monthly income used to calculate contributions is five times the national monthly average gross wage in the previous month.

The national monthly average wage is 55,505 dinars (February 2012).

Employer: 6.15% of covered payroll (temporary reduced rate for newly hired workers, workers older than age 45, and workers younger than age 30).

The minimum monthly earnings used to calculate contributions are 35% of the national monthly average gross wage in the previous three months.

The maximum monthly earnings used to calculate contributions are five times the national monthly average gross wage in the previous month.

The national monthly average wage is 55,505 dinars (February 2012).

Government: None; contributes as an employer.

Qualifying Conditions

Cash sickness benefits: Must be covered for at least three continuous months or six months in the last 18 months. There is no minimum coverage period for an incapacity resulting from a work injury or an occupational disease. The benefit is also paid for providing care for a sick family member (up to four months in one calendar year) or if the insured donates tissue or an organ.

If the insured receives benefits for more than six continuous months or for longer than 12 months within an 18-month period and is still incapable of work, a disability pension may be paid.

Cash maternity benefits: Paid to either of the child's parents or a custodian. A foster parent is also entitled to benefits for adopting a child.

Medical benefits: There is no minimum qualifying period.

Sickness and Maternity Benefits

Sickness benefit: The monthly benefit is paid from the first day of incapacity until recovery or the award of a disability pension. (The employer pays benefits for the first 30 days.) The insured receives 65% of the calculation base; 100% for a work injury or an occupational disease; 100% for a tissue or organ donation.

The calculation base for an insured person is his or her average wage in the last three months, up to five times the national monthly average wage. If the benefit is paid for more than two months, the calculation base is adjusted each month according to changes in the average wage in the insured's place of employment.

The national monthly average gross wage is 55,505 dinars (February 2012).

The calculation base for a self-employed person is his or her average covered income in the last three months.

Maternity benefit: 100% of earnings are paid with at least six months of continuous coverage; up to 60% with three to five months; 30% with less than three months. The benefit is paid monthly.

Earnings used to calculate benefits are earnings in the last 12 months before the maternity leave began, up to five times the national monthly average wage.

The national monthly average gross wage is 55,505 dinars (February 2012).

The minimum benefit is the minimum monthly wage.

For a self-employed person, the benefit is the average covered income in the last three months.

The leave period for the first and second child begins 28 days before the expected date of childbirth and is paid for 365 days. The leave period for the third and each successive child is paid for two years.

Workers' Medical Benefits

Medical services are provided directly to patients through the facilities of the public and private health service based on contracts with health insurance institutions.

Services include measures for prevention and early detection of diseases, medicine, surgery, family planning and maternity care (for up to 12 months after childbirth), dental treatment, and prostheses.

Compulsory medical insurance funds finance from 65% to 100% of the cost of medical services and treatments, according to a schedule in law; 100% of the cost of medical services and treatments for work injuries and occupational diseases.

Copayments are reduced for military and civil war invalids, blind persons, persons with a permanent disability, persons receiving financial compensation for providing care to another person, and voluntary blood donors.

Dependents' Medical Benefits

Medical benefits for dependents are the same as those for the insured.

Administrative Organization

Ministry of Health (http://www.zdravlje.gov.rs) provides general supervision.

Republic Fund of Health Insurance (http://www.rfzo.rs) administers benefits.

Ministry of Finance–Tax Administration (http://www.poreskauprava.gov.rs) collects contributions.

Institute for Social Insurance (http://www.zso.gov.rs) coordinates the implementation of international social security agreements.

Work Injury

Regulatory Framework

There is no specific program for work injury. Cash and medical benefits for a work injury or an occupational disease are provided through the Old Age, Disability, and Survivors and Sickness and Maternity programs.

Unemployment

Regulatory Framework

First law: 1927.

Current laws: 1996 (citizens employed abroad), 2003 (unemployment insurance), and 2003 (vocational rehabilitation).

Type of program: Social insurance system.

Coverage

Employed and self-employed persons.

Exclusions: Farmers.

Source of Funds

Insured person: 0.75% of covered earnings.

The minimum monthly earnings used to calculate contributions are 35% of the national monthly average gross wage in the previous three months.

The maximum monthly earnings used to calculate contributions are five times the national monthly average gross wage in the previous month.

The national monthly average wage is 55,505 dinars (February 2012).

Self-employed person: 1.5% of covered income.

The minimum monthly earnings used to calculate contributions are 35% of the national monthly average gross wage in the previous three months.

The maximum monthly income earnings used to calculate contributions is five times the national monthly average gross wage in the previous month.

The national monthly average wage is 55,505 dinars (February 2012).

Employer: 0.75% of covered payroll.

The minimum monthly earnings used to calculate contributions are 35% of the national monthly average gross wage in the previous three months.

The maximum monthly earnings used to calculate contributions are five times the national monthly average gross wage in the previous month.

The national monthly average wage is 55,505 dinars (February 2012).

Government: None; contributes as an employer.

Qualifying Conditions

Unemployment benefit: At least 12 consecutive months of coverage or 12 months in the last 18 months. An interruption in coverage of up to 30 days is permitted.

The benefit may be reduced for part-time work.

Unemployment Benefits

The monthly benefit is 50% of the insured's average earnings in the last six months.

The duration of the benefit depends on the length of the coverage period or the insured's age: the benefit is paid for up to three months with one to five years of coverage; up to six months with six to 15 years; up to nine months with 16 to 25 years; up to 12 months with more than 25 years; or up to 24 months if the insured will be of pensionable age within the next two years.

The minimum benefit is 80% of the national monthly minimum wage.

The maximum benefit is 160% of the national monthly average wage.

Schedule of payments: The benefit is paid monthly; a lump sum is paid if the funds will be used as start-up capital for a new business.

Administrative Organization

Ministry of Economy and Regional Development (http://www.merr.gov.rs) provides general supervision.

National Employment Service (www.nsz.gov.rs) registers all employers and job seekers and administers the program.

Family Allowances

Regulatory Framework

First law: 1949.

Current law: 2002 (families with children).

Type of program: Universal system.

Coverage

Serbian citizens residing in Serbia.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: Benefits are financed through the central governmental budget. Municipal governments may provide supplements or additional benefits.

Qualifying Conditions

Parental allowance (means-tested): Paid to a mother for up to four children. The mother must be a resident citizen of Serbia and covered for health insurance.

In the absence of the mother, the father may be eligible.

The parental allowance is not paid if the mother, or other family members in the household, pays tax on property valued above 12,000,000 dinars.

Child allowance (income-tested): Paid to a parent, guardian, or foster parent raising up to four children. The parent, guardian, or foster parent must be a resident citizen of Serbia and covered for health insurance.

The child must be younger than age 19 (age 26 for children with special needs).

Income test: Monthly per capita family income must not exceed 7,015 dinars; 8,418 dinars for a guardian, foster parent, single parent, or the parents of a child with a disability (December 2011). Per capita family income levels are adjusted monthly according to changes in the cost of living.

Family Allowance Benefits

Parental allowance (means-tested): A lump sum of 31,782 dinars is paid for the first child; 124,279 dinars for the second child; 223,693 dinars for the third child; and 298,254 dinars for the fourth child.

Benefit adjustment: Benefits are adjusted every six months, in April and October, according to changes in the cost of living.

Child allowance (income-tested): 2,221 dinars for each child is paid monthly.

Kindergarten costs for orphans, foster children, children with disabilities, and children in low-income families are reimbursed. The child must be eligible for the child allowance.

Benefit adjustment: Benefits are adjusted every six months, in April and October, according to changes in the cost of living.

Administrative Organization

Municipal governments award benefits. Ministry of Labor and Social Policy (http://www.minrzs.gov.rs) is responsible for appeals.