Serbian employers demand a reduction in payroll contributions

According to a survey conducted by the Union of Employers of Serbia (UPS), around 87 per cent of employers in Serbia believe that it is necessary to reduce payroll taxes and contributions, so that companies can approve the increase of the minimum wage.

The negotiations between trade unions and the government on the minimum wage for 2023 are expected to begin soon, and as usual, companies’ positions on this issue are being researched before the start of negotiations.

Of the total number of employers surveyed, 68.3 per cent, or 5 per cent more than in 2021, say that the prerequisites for raising the minimum wage have been met.

Just under 1/3 of the employers, about 31.7%, believe that the conditions for an increase are not met. As a measure that would help companies pay the minimum wage increase, most respondents see a reduction in payroll taxes and contributions. Another would be an increase in the non-taxable part of income, and thus a reduction in tax and parafiscal contributions.

Nebojša Atanackovic, honorary president of the Employers’ Union, comments on the issue:” There are employers who, in this crisis, have to deal with an increase in the energy price, and yet they cannot increase the prices of their products or services. We have to take care of the weakest employers, just as trade unions take care of the poorest employees. Trade unionists will demand an increase of the minimum wage to 50,000 dinars, but the Serbian president has already stated that the minimum wage cannot be higher than 40,000 dinars. It must be taken into account that even that 15 per cent increase is a big burden for some employers.”

Atanackovic adds that, in 2021, the untaxed part of wages was increased by 1,000 dinars, while in previous years, there was a reduction in the payroll contributions by half a percentage point.

“At the moment, the payroll contributions amount to 61%. When the President of Serbia recently said that the Serbian government should allocate EUR 300 million to cover a 15% increase in minimum wage, he also mentioned the possibility of concessions for employers. Increasing the non-taxable part of salaries is one of the possibilities. He also promised that he would try to reduce all taxes and contributions to 60.2 per cent,’ Atanackovic concludes.

(Politika, 03.08.2022)





This post is also available in: Italiano

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