An employment contract represents the fundamental legal act by which an employment relationship is established between an employee and an employer. In addition to basic information about the contracting parties, the type of work, place of work, and working hours, the employment contract must also contain clearly defined elements related to the employee’s salary. These elements are of key importance as they ensure transparency, legal certainty, and protection of employees’ rights.
According to the Labor Law of the Republic of Serbia, an employment contract must obligatorily contain the amount of the basic salary on the date the contract is concluded. The basic salary represents the starting point for calculating total earnings and may not be lower than the minimum wage determined by law. Clearly defining the basic salary enables the employee to know in advance the amount of monetary compensation for the work performed.
In addition to the basic salary amount, the employment contract must also include elements for determining both basic and increased salary. This includes allowances for night work, overtime work, work on public holidays that are non-working days, as well as allowances based on years of service, if provided for. These elements are important because they enable accurate and lawful calculation of salary under different working conditions.
The employment contract should also define criteria for evaluating work performance, especially in cases where part of the salary depends on work results. These criteria must be objective, measurable, and known to the employee in advance, in order to avoid abuse and unequal treatment of employees.
Finally, the contract must include the deadlines and method of salary payment, including the information that salary is paid at least once a month. If all the above elements are regulated in more detail by a collective agreement or an internal rulebook, the employment contract should refer to the relevant act containing those provisions, thereby ensuring their application and legal validity.