As of 2016, employment incentives will be valid both for small and micro companies and entrepreneurs if they hire at least two new people, Novosti reports. In that case, employers will be able to return 75% of taxes and contributions. That “discount” has been available only for investors who hire at least 100 people.
New employment incentives have been planned within changes and amendments to the law on income contributions for compulsory social insurance which is at the moment before the parliament members of the Assembly of Serbia.
Entrepreneurs, small and micro companies will be able to return funds by the end of 2017. New thing is that existing incentives for new people will be valid, instead of by the end of June 2016, a year and a half longer.
In order to meet the requirements for the 75% tax and contribution return, small and micro enterprises should increase the number of their employees as of 31.10.2015. If they hire one person before the said date and subsequently hire another one, the incentives will be valid only for the second employee. Employers who have laid off their employees can count on the incentives only when they exceed the required number by the end of October.
The Union of Employers salutes the announced amendments to the law and believes that they can contribute to the reduction of the unregistered work. However, they say, that higher employment can happen only as a result of economic growth.
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