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    Employers: Increase in minimum wage possible if payroll taxes are reduced

    In order for the businesses to pay the increased minimum labour price, it is necessary to reduce taxes and contributions on salaries. This view was expressed by as many as 87% of companies in a poll conducted by the Union of Employers of Serbia.

    Negotiations between the Union of Employers of Serbia, representative trade unions and the Government of Serbia on the minimum labor price for 2023 should begin on the first days of August, and the Union traditionally investigates the company’s views on this topic before the start of negotiations.

    Of the total number of surveyed employers, 68.3%, i.e. five percent more than last year, agreed with the assessment that the conditions for raising the minimum labour price had been met.

    More than 31% of them believe that there are no conditions for an increase in the minimum wage

    Slightly less than a third of employers (31.7%) believe that there are no conditions for increasing the minimum wage.

    Of the employers who believe that there are conditions for increasing the minimum wage, the majority (19.8%) believe that the optimal increase is between nine and 12%.

    This means that the net minimum monthly salary would amount to about RSD 41,500.

    4.5 percent of them said they were in favour of an increase of up to five percent, 12.4 percent of them voted for six to eight percent, 12.7 percent of respondents opted for 13 to 15 percent, and the growth of the minimum wage above 15 percent is supported by 17.8 percent of employers who find the increase in minimum wage acceptable.

    The vast majority of respondents single out a reduction in taxes and contributions on wages as a measure that would help businesses pay an increased minimum labour price.

    The next measure that would be significant for the economy is an increase in the non-taxable part of salary, and then a decrease in fiscal and parafiscal levies, the Union of Employers said in a statement.

    Of the companies that assessed that there were no conditions for increasing the minimum labour price, convincing majority (81 percent, or a quarter of the total number of respondents) believe that this would jeopardize the business of the company.

    The decrease in the number of employees is announced by 39 percent, i.e. more than 12 percent of the total number of participants in the survey.

    356 companies, employing more than 44,000 workers, participated in the survey of the Union of Employers of Serbia.

    Izvor: Beta, BIZLife

    Foto: Pixabay, BIZLife

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