Salary calculation can feel like higher math, but it really boils down to a few clear, standardized steps. While exact rates change, the sequence of adding and subtracting is pretty much universal.
Everything kicks off with your agreed Gross salary. This is the contract figure, plus any extras like overtime, holiday pay, or meal allowances. Summing those up gives your total Gross base.
The first major cut is for your future. These are the worker-side contributions supporting your pension (PIO), healthcare, and unemployment insurance.
Income = Gross - Contributions (worker's share)
Luckily, the government doesn't tax every single penny. You get a monthly tax-free minimum. In Serbia, this is a fixed amount adjusted upward every year.
Tax base = Income - Tax-free amount
Now the tax rate (currently 10% in Serbia) applies solely to that Tax Base. The Tax Administration sets exactly how this is processed.
The actual money you see in your bank account comes from this final, favorite operation:
Net salary = Income - Income tax
If you're employed, your employer is legally bound to handle this entire process. They forward your taxes and contributions to the state, and hand you the clean Net amount.