Founders of a company who, based on registration with the Serbian Business Registers Agency (APR), represent and act on behalf of their company without establishing an employment relationship are treated as mandatorily insured persons.

They acquire pension service without being employed and must pay contributions on at least the minimum monthly contribution base, as follows:

• Pension and disability insurance (PIO): 24%
• Health insurance contribution: 10.30%
• Unemployment insurance contribution: 0.75%

However, if such persons are already employed by another employer, then in their own company they pay only:

• Pension and disability insurance (PIO): 24%

If the company has several founders, it must calculate and pay contributions for each of them on at least the minimum base prescribed for that year.

If a founder is employed in their own company and has employee status, they receive a salary in accordance with the employment contract. In that case, salary tax and contributions are paid on the agreed salary, which may not be lower than the minimum contribution base prescribed for that year.

If a founder who is also the company’s director has concluded a contract on rights and obligations under which they receive compensation (a so-called management contract), they pay:

• All contributions on the minimum monthly base
• Tax and PIO on the agreed compensation

In that case, PIO is effectively paid twice: once as a founder on the minimum base and once on the agreed compensation.

Founders who do not work in their company, are not registered as company representatives, and have not established employment, are not treated as self-employed insured persons and therefore have no obligation to pay these contributions.