Serbian Association of Employers to Request 1% Reduction of Wage Taxes and Contributions

The director of the Serbian Association of Employers, Srdjan Drobnjakovic, said that they would request a reduction of wage taxes and contributions by 1% from the Government of Serbia in October, during the preparation of the state budget.

He added that they would make this request even if the request to increase the non-taxable salary components from 16,000 dinars to 19,000 dinars was accepted during the negotiations on the minimum wage for 2021.

Drobnjakovic said that companies wanted the charges to be reduced not to increase profit, but to be able to pay salaries to their employees and not to have to resort to shadow economy practices.

– There's a lot of burden on the economy, because, in addition to those fiscal obligations, it also pays around 500 parafiscal charges – Drobnjak said.

According to him, the employers have been asking for the parafiscal charges to be reduced for several years now, but despite the promises made by the finance minister that they will be “cut”, the number of those charges has grown from 350 to around 500 of various kinds. He said that the burden on the economy would be reduced by around RSD 11 billion if the non-taxable salary components were increased from 16,000 to 19,000 dinars.

– I believe that the time has come to reform to tax system and to introduce progressive grade-based taxation – Drobnjakovic said.

Unija poslodavaca Srbije

Vlada Republike Srbije

Serbian Association of Employers

Government of Serbia

Srdjan Drobnjakovic

reduction of salary taxes and contributions

taxes and contributions

shadow economy

fiscal charges

parafiscal charges

minimum wage

coronavirus

covid 19

pandemic

crisis

grade based taxation

payment postponement