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    Many employers will NOT TAKE a new aid package

    The coordinator of the Business Support Network in Serbia, Dragoljub Rajic, believes that this year a significantly lower number of companies will apply for non-refundable state aid of three halves of the minimum wage for employees, due to worsening business results and a ban on dismissing more than ten percent of employees.

    „In January and February, even in the years when there was no pandemic, the turnover was lower, and this year it was even worse due to limited business operation,“ Rajic told the Beta news agency.

    In February 2021, the Government of Serbia made a decision to help the economy by granting those who apply for help half the minimum wage for three months for the employees in micro, small, medium and large companies.

    The condition is that employers do not lay off more than ten percent of employees after the last payment, and the number is checked every month and in case that amount is exceeded, they must return the „non-refundable“ aid with interest.

    Rajic said that, due to the limited right to dismiss workers in a situation when the volume of business operation was reduced in 2020, when the same rule applied for aid in the form of the minimum wage for five months, employers had a problem with redundancy and that now fewer of them would take aid.

    Less damage if they do not take the money

    Registration for three halves of the minimum wage this year began on March 1, but the Tax Administration has not yet announced how many companies have registered so far. Payment is due to begin on April 8 for the month of March.

    The advisor for economic issues in the United Branch Trade Union (UGS) „Nezavisnost“ Zoran Ristic has said that the employer who took the aid could not dismiss more than ten percent of workers and even if they resigned, he would have to hire new workers and maintain a minimum of 90 percent of employees at the time of receiving assistance.

    Ristic said that the provision on the right to the maximum number of dismissed people of ten percent was „acceptable because it guarantees some kind of security for the worker“.

    „That provision is in line with moral principles, but this year it will deter many from taking state aid for employees,“ Ristic said.

    According to the assessment of many businessmen, the damage would be lower if three halves of the guaranteed salary were not taken compared to keeping redundant employees.

    Izvor: Beta

    Foto: Pixabay

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