Brnabic announces reduction of payroll tax

PM Ana Brnabić has said that the government is moving in the right direction in terms of labour regulation, but that there are still many problems to be solved. After meeting with representatives of the Federation of Independent Trade Unions of Serbia (SSSS), the PM said that the state is planning to reduce taxes and increase the non-taxable part of earnings to reduce the consequences of the pandemic for employers.

“It is encouraging that we have a continuous growth of wages and that the budget proposal for 2022, which I will submit to the National Assembly, proposes a growth of the minimum wage of 9.4% this year, which exceeds 35,000 dinars,” Brnabić said.

He added that the growth of the minimum wage will be much higher than the growth of the gross domestic product (GDP) this year, which is expected to be “just over 7%”.

Brnabić also said that during the meeting that it was estimated that salary growth in the public sector since August last year was 42% and in real terms 52%.

“That gap between salaries in the public sector and private sector has narrowed slightly, and it currently stands slightly over 14%. Before it was over 20%,” she explained. Brnabić also recalled that the budget for next year stipulates a proposed increase in public sector salaries of 7.4%.

The president of the Federation of Independent Trade Unions of Serbia, Ljubisav Orbović, underlined that the trade unions were ready to continue talks with the Serbian government and that the most important issue for them was the growth of wages and the minimum wage. He said that the trade unions “participated in the negotiations on the minimum wage, but did not negotiate” and that such a method is unacceptable in the future.

“It is important that, in the next period, we negotiate and discuss with the unions, especially in the public sector, what the wages will be for the next period, of course according to the possibilities we have as a State at this time,” he said.

Speaking about the Vietnamese workers working at the construction site of the Chinese tyre factory Linglong, Orbović assessed that the event had led to “a great misfortune for Serbia” and it was recruitment agencies that brought the workers to Serbia should bear the biggest responsibility for not providing the workers with acceptable accommodation.

(N1, 22.11.2021)

This post is also available in: Italiano

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