Serbian Prime Minister, Ana Brnabic has confirmed that the government has decided to increase the non-taxable part of salaries.
She also underlined that, by the year end, the government would have adopted the official decree regulating this issue, and that the measure would be applicable as of 2018.
“I cannot say, at the moment, how much is this non-taxable part going to be increased because we still have relevant analyses pending”, Brnabic said at a press conference.
She added that that measure would alleviate the burden on employers, and if the effects of this measure prove to be good, it would continue to be implemented.
Brnabic also said that that there was great news for 350,000 people on minimum wages too since the government agreed on a 10% increase of minimum wage.
Currently, the non-taxable part of salaries stands at 11,790 dinars. According to the calculations done by the Fiscal Council, if this non-taxable part is to be raised to 18,500 dinars in 2018, those employers with minimum wages would benefit the most from it considering that the employers have to pay between 55% and 65% on top of salaries towards various taxes and contributions.
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