Serbian government announces more new measures to help companies

If we add up all the benefits that the new government measures from the second set of financial assistance for companies will bring, companies with up to 10 employees will get 8,000 euro in assistance over the next two months.

Companies did not expect the second set of government measures considering that only a few weeks ago the government said that there was no money in the budget for new measures.

The first measure announced refers to the payment of 60% of the minimum wage for each worker employed in a micro, small and medium enterprise. This measure will be applied during a two-month-period. In practice, each company with up to 10 employees will get a total of 360,000 dinars or just over 3,000 euro during those two months. The first payment will be made on 10 August and the second in September.

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The second measure, which President Aleksandar Vucic has said it might be implemented once the negotiations with the National Bank of Serbia are finished, would imply the possibility of a new moratorium on repayment of retail and corporate loans and leasing arrangements.

As announced, the moratorium will last at least two months, which would mean much more money and liquidity in critical months. Bearing in mind that a company owner with a dozen workers owes an average of 1,000 euro on the account of unpaid loans per month, this measure would save them about 2,000 euro.

The third measure, which refers to the postponement of the payment of payroll tax and contributions for one month, would mean that company owners would have another 366,000 dinars, about 3,100 euro, at their disposal each month. This calculation is based on a presumption that the average salary is 60,000 dinars.

To recall, the government has previously supported businesses in Serbia by paying out the minimum wage for three months. The first minimum wage was paid at the beginning of May, the second on 4 June and the third on 7 July. Large companies got 15,000 dinars for each worker, while smaller ones 30,000 dinars, i.e. the full minimum wage.

Earlier measures included a three-month-long moratorium on repayment of both retail and corporate loans and deferral of payment of payroll tax and contributions for the same period.

(Blic, 23.07.2020)

This post is also available in: Italiano

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