Employers are in favour of higher MINIMUM WAGE, but with lower LEVIES

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    Employers are in favour of higher MINIMUM WAGE, but with lower LEVIES

    Approximately two thirds of businessmen estimated that a base for increasing the minimum wage exists, but in order for wage growth to be sustainable, long-term and acceptable for companies, it is necessary to reduce payroll taxes and contributions, said the Union of Employers of Serbia.

    “The majority of employers, 63 percent, state that an increase in the minimum wage is necessary, but that several conditions must be met, the first being the reduction of payroll taxes and contributions, for which 85 percent of businessmen voted,” the association’s press release says, after a survey conducted in micro, small, medium and large enterprises.

    It is added that the percentage of businessmen who are in favour of increasing the “minimum wage” represents an exceptionally substantial growth in relation to only 15 percent of employers, who supported the increase during the most intense Covid crisis in 2020.

    The increase of the non-taxable part of the salary, as a condition for the growth of the minimum wage, is supported by 55% of the respondents, and the suppression of illegal employment is considered by 44% of businessmen as very important for sustainable business of Serbian companies.

    Based on the survey among companies, the Union of Employers has devised several proposals that can enable sustainable growth of the minimum wage, and the first is an increase in the non-taxable amount, i.e. the abolition of the fiscal burden for minimum wages.

    The second proposal is to reduce taxes and contributions for all employees, as well as administrative procedures and costs.

    The third proposal is the introduction of tax relief for new employees and persons older than 45.

    Izvor: Beta

    Foto: Pixabay

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