Apart from taxes, a significant portion of your gross salary goes to so-called Contributions. Contributions are mandatory public and social payments – primarily intended to cover the costs of your medical treatment (health) and the payout of your earnings after the end of your working life (pension).
A total of 14% is deducted from the employee's gross salary.
The pension (PIO) contribution is a mandatory expense. In addition to the 14% deducted from your gross salary, the employer pays an additional 10% on top of your gross salary.
This part of the burden is borne directly by the employee through a reduction in the gross salary.
In Serbia, 5.15% is deducted from the gross salary and 5.15% is paid on top of the gross salary.
Health insurance contributions in Serbia are paid twice: one part is borne by the worker (5.15%), and the other part by the employer (5.15%).
Health insurance is based on the principle of absolute solidarity. Regardless of whether a director has a gross salary of 500,000 RSD (and the employer pays a large monthly amount for them) or a cashier on minimum wage (who pays the minimum legal amount), both have exactly the same rights and treatment during an operation or service in a public hospital. Today, the young and healthy co-finance the elderly and sick, but in old age, someone will pay for them.