Establishing an employment relationship with pensioners

According to the Type of Pension

In Serbia, establishing an employment relationship with pensioners depends on the type of pension the individual receives—whether it’s an old-age, family, or disability pension. Each of these categories has specific rules and limitations when it comes to employment or other forms of work engagement.

1. Old-Age Pensioner

✅ Possibility of Employment:

Old-age pensioners can be employed without any legal restrictions. The employment can be on a fixed-term or indefinite basis, and they retain the right to receive their pension at the same time.

✅ Possibility of Work Outside of Employment:

An old-age pensioner can sign:

A contract for temporary or occasional work

A service contract

A supplementary work contract

The Ministry of Labour, Employment, and Social Policy has stated:

“There are no legal obstacles for an old-age pension beneficiary to establish an employment relationship by signing a work contract, in accordance with Articles 30 to 33 of the Labour Law, or to conclude a service contract pursuant to Article 199 of the same law. Payment of the pension earned under the pension and disability insurance regulations is not suspended for pensioners who enter into employment or sign a service contract.”
(Opinion No. 011-00-942/2010-02, dated December 16, 2010)

❌ Restrictions:

The only legal restriction applies in the field of education, where the law stipulates that the employment relationship ends automatically at age 65, with no possibility of further engagement.

2. Disability Pensioner

❌ No Possibility of Employment:

Disability pensioners cannot enter into an employment contract, as this would jeopardize their right to a disability pension. Disability pensions are granted only in cases of complete loss of working ability, and any employment may result in loss of the right, not just suspension of payment.

The Ministry of Labour has made this position clear:

“…by definition of disability, pension beneficiaries who were granted this right as of April 10, 2003, cannot be employed, as they are not considered to have working ability. (…) The law does not provide for suspension of payment, but rather loss of the right if there are changes in the disability status.”
(Opinion No. 011-00-00616/2014-07, dated October 9, 2014)

✅ Possibility of Work Outside of Employment:

However, service contracts (contracts outside formal employment) are allowed, as they do not constitute an employment relationship.

The Ministry of Labour clarified:

“The law does not prescribe limitations regarding who can sign a service contract. (…) Since this is a contract outside of employment, there are no legal obstacles for a disability pensioner to conclude a service contract.”
(Opinion No. 011-00-6/157/2015-02, dated June 4, 2015)

3. Family Pensioner

❌ No Possibility of Employment:

Establishing an employment relationship is not permitted—payment of the family pension is suspended if the beneficiary becomes insured (i.e., gets employed).

✅ Possibility of Work Outside of Employment:

Allowed through:

Service contracts

Temporary and occasional work contracts

Copyright agreements

Seasonal jobs

Provided that the monthly income does not exceed the lowest insurance base (currently 23,921 RSD). If this limit is exceeded, pension payments are suspended, but the right is not lost—payments resume once the engagement ends.

The Ministry of Labour explained:

“…a family pension beneficiary who becomes insured through temporary or occasional work (…) will not have their pension suspended if the monthly earnings remain below the minimum insurance base for employees (currently 23,921 RSD). However, if the amount exceeds this base, pension payments will be suspended.”
(Opinion No. 021-02-2/33/2019-07, dated January 31, 2019)

Impact of Employment on Pension – Summary by Pension Type
Pension Type Work Possibility Pension Payment Notes
Old-Age ✅ Yes ✅ Continues Pension can be recalculated if there is at least 1 year of insurance
Early Old-Age ✅ Yes ✅ Continues Same as old-age pension
Disability ❌ No (employment) / ✅ Yes (service contract) ❌ Right lost if ability is confirmed Not just suspended—pension right is lost
Family ❌ No (employment) / ✅ Yes (service, etc.) ⚠️ Suspended if income > 23,921 RSD Right is retained, payments resume after work ends
Pension Recalculation

Old-age pensioners can request a recalculation of their pension if they have worked for at least 12 months after retirement.

However, the newly calculated pension may be lower, in which case the pensioner can withdraw the request if the new amount is not beneficial.

Disability and family pensioners do not have the right to pension recalculation.