New Alignment of Non-Taxable Amounts under Personal Income Tax, the Amount for Reduction of the Contribution Base, and the Level of Unemployment Benefits
Pursuant to the decisions published on 23 January 2026, the dinar-denominated non-taxable amounts prescribed by the Law on Personal Income Tax, as well as the dinar amount prescribed by the Law on Mandatory Social Insurance Contributions, have been adjusted in line with the annual consumer price index for 2025. In addition, the National Employment Service has announced that the amount of unemployment benefits will be increased in 2026.
- Adjustment of Non-Taxable Amounts under Personal Income Tax
The Law on Personal Income Tax provides that certain types of income are exempt from personal income tax up to a prescribed amount (e.g. assistance in the event of the death of an employee or retiree, scholarships, jubilee awards for employees, per diems for domestic business travel, etc.).
As consumer price indices vary depending on price increases or decreases of goods on the market, the purpose of the adjustment decision is to align the statutory amounts with such changes.
Under the new decision, the dinar-denominated non-taxable amounts have been increased compared to 2025. The most relevant increases include the following:
- Reimbursement of documented transportation costs for commuting to and from work – RSD 5,782
- Reimbursement of transportation costs during a business trip – RSD 10,121
- Per diem for domestic business travel – RSD 3,471
- Jubilee award for employees – RSD 28,912
- Gifts to employees’ children up to the age of 15 on the occasion of New Year and Christmas – RSD 14,457
- Scholarships and student loans – RSD 44,325
- Financial assistance to individuals who are not employed by the grantor – RSD 19,209
- Adjustment of the Dinar Amount for Reduction of the Contribution Base
The Law on Mandatory Social Insurance Contributions provides that the employer pays social insurance contributions for employees on a contribution base reduced by a prescribed monetary amount.
Due to changes in the consumer price index, the monetary amount by which the employer’s contribution base is reduced has been increased compared to 2025 and now amounts to RSD 8,677.
- Adjustment of Unemployment Benefits
Under the Law on Employment and Unemployment Insurance, the right to unemployment benefits is granted to an unemployed person who has been compulsorily insured against unemployment for at least 12 months continuously or intermittently within the last 18 months. An unemployed person is entitled to unemployment benefits in the event of termination of employment or termination of mandatory insurance due to termination of employment by the employer, provided that the employment did not terminate at the employee’s own initiative or due to the employee’s fault.
The minimum and maximum gross amounts of unemployment benefits will be increased compared to 2025. Accordingly, in 2026:
- the minimum gross unemployment benefit will amount to RSD 33,745 (an increase of RSD 887), while the minimum net benefit will amount to RSD 22,170.47 (an increase of RSD 582.76);
- the maximum gross unemployment benefit will amount to RSD 78,226 (an increase of RSD 2,057), while the maximum net benefit will amount to RSD 51,394.48 (an increase of RSD 1,351.45).
In addition, following the adjustment, the base for calculating the daily unemployment benefit will also be increased and will amount to RSD 1,507.12.
All of the above changes and increases shall apply as of 1 February 2026.
For any additional information or consultations, the team at Tasić & Partners remains at your disposal.