Serbia Shared Services - Siepa

Labor PoolCompetitively PricedAverage salaries in Serbia are low enough to ensure cost-effective operation. Totalcosts for employers are only 40% of those in other East European EU member-states.Income tax and national insurance contributions are still among the lowest inCentral and Eastern Europe. Total labor costs for employers stand at 63% of net salary.Real salaries fluctuate in the few percent range ensuring the cost competitiveness ofSerbia’s labor force.Example of Gross Salaries in EUR, Comparative AnalysisCountry/Position Accountant Chief AccountantTelemarketingOperatorCall CenterOperatorSlovakia 808 n/a 587 840Czech Republic 887 1,110 636 882Hungary 730 1,460 475 751Serbia 492 691 365 545Bosnia and Herz. 670 927 591 n/aSource: Infostud; exchange rate September 2011, 1 EUR = 102 RSDLabor PoolAverage Net Salaries (%)Average Net Salaries in EUR4%3%2%1%-0%-1%IINominal Gross SalaryIII IV I II III IV I2009 2010 2011Source: National Bank of SerbiaIISlovenia 987.0Croatia 755.0Hungary 518.0Montenegro 484.0Bosnia & Herzegovina 418.0Macedonia 367.0Romania 358.5Serbia 357.0Bulgaria 352.0Average Ourly Labour Cost (€)SerbiaBulgariaRomaniaLithuaniaLatviaPolandHungarySlovakiaCroatiaCzech R.PortugalSloveniaGreeceUKGermany0 5 10 15 20 25 30Source: Commerzbank Corporates & Markets, EurostatSource: Eurostat, March 201114 15