Home Office Costs: How Much Does Working 'in Pajamas' Cost?

Serbia's labor law, enacted in 2005, fails to adequately address the financial realities of remote work, leaving employees and employers navigating outdated regulations. While the law acknowledges that working from home incurs additional costs, it offers no clear guidelines for calculating compensation. Employment contracts must specify provisions for work equipment and its usage, but the absence of a unified calculation methodology frequently leads to disputes.

Branka Anđelković, director of Re:People – Center for Society and Technology, explains that while the law doesn't list every possible expense, it implies that costs like using personal computers, internet, electricity, and phone usage can be covered. However, without a standardized approach, determining fair compensation becomes a point of contention.

To resolve these issues, Serbia could establish minimum standards or calculation methods, mirroring practices in European nations. Belgium, for instance, uses administratively set flat-rate allowances for remote work, while Austria and Germany employ tax incentives. These approaches offer clearer frameworks than the current ambiguity in Serbian law.

Furthermore, remote work introduces concerns about data security, a responsibility that legally falls on the employer. Under the Law on Personal Data Protection, employers must implement "appropriate technical and organizational measures" to safeguard data, regardless of whether employees work from home or in the office.

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The law does not provide an exhaustive list of costs, but from its formulation and legal practice, it follows that they can include the use of one's own computer or other equipment, internet connection, electricity, telephone, and other costs incurred due to working from home.