On December 6, the Serbian Parliament adopted amendments and corrections to 15 laws. The new amendments will be published in the next issue of the Republic of Serbia Official Gazette.
According to the Politika daily, amendments to one of the law states that, in the future, employers will pay 11.5% instead of 12% to the pension fund and the non-taxable part of the salary will be increased from 15,300 to 16,300 dinars.
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According to the adopted amendments to the Income Tax Law, companies, who employ persons who have not been employed during the year at all, will be exempted from paying 70% of the tax on salaries and on pension and disability insurance contributions for these persons during 2020, 65% in 2021 and 60% in 2022.
From 1st January, pensions will be adjusted according to the Swiss formula, i.e. a percentage that represents the sum of half of the percentage of fluctuations in consumer prices and half of the percentage of fluctuations in average earnings, taxes and contributions excluded.
Another novelty is that if a pension beneficiary is disbursed in advance an amount that is higher than the final amount of the pension, the Pension Fund will suspend one-third of the monthly pension until this discrepancy is covered in full, unless the Fund and the beneficiary agree otherwise.
Persons working in Serbia for a foreign employer that has no registered office in the country now also have the right to mandatory pension and disability insurance.
The public service tax has been increased from 220 to 235 dinars and will apply from 1 January 2020.
The implementation of salary scales (in the case of civil servants) is postponed until 2021.
Another novelty that a partner in common-in-law marriage now has the right to a family pension, provided that the union lasted at least three years or that they have a child together.
Finally, judges, prosecutors and deputy judges for war crimes and prosecutors for organized crime will be allowed to retire early with full benefits.
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