Survey: Do Serbian employers want higher minimum wage and under which conditions?

Close to two-thirds of business people have said that there is a basis for an increase of the minimum wage, but, in order for the salary increase to be sustainable, long-term and acceptable for companies, payroll tax and contributions have to be reduced, the Serbian Association of Employers announced today.

“Most employers, 63% of them, stated that an increase of the minimum wage was necessary, but first several prerequisites need to be met, the first of which is reducing payroll tax and contributions. Over 85% of the surveyed business people voted for this measure,” the Association says in a press release following a survey carried out at micro, small, medium-sized and large enterprises.

It is added that the percentage of the business people who are in favour of a minimum wage increase marks an extraordinarily large growth compared to the 15% of the employers who supported it at the peak of the COVID-induced crisis in 2020.

As said, the increase is substantial even compared to 2018, when the proposition was supported by 43% of those surveyed, and 2019, when it was supported by 46%.

An increase of non-taxable salary components, as a requirement for an increase of the minimum wage, is supported by 55% of the surveyed business people, while 44% consider the suppression of undocumented employment a very important factor when it comes to sustainable business operations.

Based on this survey, the Serbian Association of Employers has formulated several propositions which can enable sustainable growth of the minimum wage, the first of which is an increase of the non-taxable segment of the minimum wage.

The second proposition is to reduce payroll tax and contributions, and the third is to have tax exemptions for new employees and workers over 45 years of age.

The Serbian Association of Employers will present these propositions during the negotiations with the Government of Serbia and the trade unions, which should begin in a week.

(eKapija, 09.08.2021)

This post is also available in: Italiano

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