Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

Serbia

Social Security (Minimum Standards) Convention, 1952 (No. 102) (Ratification: 2000)
Employment Injury Benefits Convention, 1964 [Schedule I amended in 1980] (No. 121) (Ratification: 2000)

In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on social security, the Committee considers it appropriate to examine Conventions Nos 102 (minimum standards) and 121 (employment injury benefits) together.

The Committee takes note of the observations of the Trade Union Confederation “Nezavisnost”, received on 20 October 2023, the Confederation of Autonomous Trade Unions of Serbia (CATUS), received on 13 October 2023, and the Serbian Association of Employers, received on 13 October 2023. The Committee requests the Government to provide its comments in this respect.

Article 20 of Convention No. 102. Suitable employment. The Committee notes the observations of the CATUS provided under the Forced Labour Convention, 1930 (No. 29), indicating that unemployed persons lose their right to financial compensation under the compulsory social insurance system if they refuse a job considered suitable. The CATUS further indicates that, in practice, these jobs are usually opposite to the type of job and the level of professional and educational skills of the beneficiary. The Committee requests the Government to provide information on the criteria used in law and in practice to assess the suitability of job offers that affect the entitlement to social insurance unemployment benefits.

Article 22 in conjunction with Article 65(6) of Convention No. 102. Replacement rate of unemployment benefit. The Committee takes note of the information provided by the Government that the monthly unemployment benefits are calculated based on the daily monetary compensation defined using a personal coefficient and multiplied by the number of calendar days of the month to which the payment shall be made, and that unemployment benefits must be between 22,390 Serbian dinars and 51,905 dinars. The Government also indicates that the personal coefficient is calculated on the basis of the ratio between the beneficiary's previous income in the last 12 months before the contingency and the average annual wage established in the Republic of Serbia by the authority responsible for statistics. The Committee notes however that the Government does not indicate what would be the reference wage related to the most suitable standard beneficiary to be considered for the purposes of Article 65(6) of the Convention, in order to demonstrate whether the replacement rates currently practiced attain the levels prescribed by the table appended to Part XI of the Convention. The Committee also notes that according to sections 69 and 70 of the Law on Employment and Unemployment Insurance, the unemployment benefit shall be equal to 50 per cent of the average earnings of the beneficiary in the six months before the contingency. The Committee observes, in this respect, that according to the statistics provided by the Statistics Office of the Government of Serbia and the Mutual Information System on Social Protection of the Council of Europe (MISSCEO) database (Statistical Release | Statistical Office of the Republic of Serbia and MISSCEO (coe.int)) the minimum unemployment benefit amount paid in 2022 would represent nearly 22 per cent of the average net wage in Serbia of the previous year. The Committee takes note of the CATUS’ observations indicating that the average net unemployment benefit paid in December 2022 was 16,789.19 dinars, which corresponded to 48 per cent of the average minimum wage for 2022. The Committee further notes the “Nezavisnost”’s observation, indicating that the amount of the current level of unemployment benefits do not satisfy the basic needs of an unemployed person and that roughly 7 per cent of unemployed persons received the benefits in 2022. In this context, and given the formula of calculation of unemployment benefits, the Committee requests the Government to clearly indicate, with regard to the reference wage, which of the options in Article 65(6) is the most appropriate to reflect the manner in which unemployment benefits are calculated. It also requests the Government to indicate, by way of calculation, what is the amount paid to the respective standard beneficiary who has completed a qualifying period of 12 months, in relation to the option chosen. Lastly, the Committee requests the Government to provide statistical information on the number of workers who received unemployment benefits during the period under review and the minimum and maximum amount paid in this regard.

Article 71 of Convention No. 102. Financing of benefits. The Committee takes note of the recent modifications to the Law on Mandatory Contributions to Social Insurance, last amended by the Laws Nos 10/2022, 92/2023 and 6/2024. In this respect, the Committee notes that according to sections 9 and 44 (3) only employees are now liable to make contributions at a rate of 0.75 per cent to finance unemployment benefits. The Committee also notes that section 10 indicates that contributions from employers to the social insurance system are mandatory only in relation to pensions and disability benefits. The Committee takes notes of the CATUS’ observations indicating that until 31 December 2018, the unemployment insurance contribution was 1.5 per cent, being 0.75 per cent payable by the employees and 0.75 per cent by the employers. The Committee observes that this would imply that the total contributions to finance unemployment insurance have been halved. The Committee wishes to recall that Article 71(1) of the Convention establishes that the cost of the benefits shall be borne collectively by way of insurance contributions or taxation or both in a manner which avoids hardship to beneficiaries. Furthermore, by virtue of Article 71(2) of the Convention, financial resources constituted by the insurance contributions of employees protected should not exceed 50 per cent of the total resources allocated to finance benefits to the protection of employees and their wives and children, under all the social security branches accepted. In light of this, the Committee requests the Government to: (i) indicate if other sources of financing for unemployment benefits, whether through taxation or social insurance contributions, have been implemented to compensate for the exclusion of employer contributions; (ii) provide actuarial studies, if any, on which the amendments to the legislation regarding the reduction or exclusion of employer contributions were based; and (iii) indicate the percentage of the financial resources borne by contributions of employees allocated to social security benefits provided under each branch of the Convention accepted by Serbia, as well as the overall share of employees’ contributions considering the entirety of all accepted branches.

Article 21 of Convention No. 121. Review of the rate of cash benefits. The Committee notes the information provided by the Government that, between 2016 and 2022, earnings grew 7.8 per cent on average. During the same period, the cost of living varied on average 3.6 per cent, and pensions were increased, on average, by 4.4 per cent. The Committee notes that, in 2022, pensions grew less than both indicators: 7 per cent against 13.77 per cent of earnings and 11.9 per cent of cost of living. While taking note of this information, the Committee encourages the Government to continue providing updated information on the review of cash benefits rate, especially considering the apparent growing trend in the gap between earnings and pensions.