Employers present united front on tax reduction, Labor Law

BELGRADE Associations of employers will present proposals to Serbia's economy minister concerning a reduction in taxes and salaries and amendments to the Labor Law. Tanjug learned this from Vice President of the Association of Small and Medium-Sized Enterprises Milan Knezevic. Employers present united front on tax reduction, Labor Law "Employers' stand is that amendments to the Labor Law should enter the procedure as soon as possible," Knezevic said. Employers decided to present a united front, Knezevic said, adding that two meetings were already held with the Serbian Association of Employers, representatives of the Serbian Chamber of Commerce, AmCham and the Association of Employers Poslodavac (Employer). “We will take a unanimous stand and present proposals, and if these solutions are not accepted, we will exert intense pressure on those who should do that,” Knezevic said. The director of the Union of Employers of Serbia, Dragoljub Rajic, agrees that a "simplification" of the Labor Law and a reduction in payroll taxes should constitute a priority. For employers in Serbia, the payroll tax amounts to 64.5 percent, Rajic said, adding that employers' proposal is that it be 40 percent for average pay. “This means that for every RSD 100 paid, an employer gives RSD 64.5 to the state…similar to some countries that are five of six times wealthier than Serbia, which constitutes a serious hindrance to employment,” Rajic told Tanjug. “We must achieve a consensus and ensure that the payroll tax goes down, while at the same time launching a fierce fight against gray economy, and ensuring that those working on the black market be channeled into legal flows,” Rajic notes. Representatives of the Confederation of Autonomous Unions of Serbia (SSSS) voiced concern on Tuesday that the announced changes to the Labor Law could be to employers' benefit only, adding that there are hints that some more restrictive measures could be introduced that “will further curb the already poor rights of workers.” The SSSS will first wait for a draft bill and see the proposed measures, and then insist on consultations with other social partners, SSSS Vice President Zoran Mihajlovic said. Tanjug

Employers present united front on tax reduction, Labor Law

"Employers' stand is that amendments to the Labor Law should enter the procedure as soon as possible," Knežević said.

Employers decided to present a united front, Knežević said, adding that two meetings were already held with the Serbian Association of Employers, representatives of the Serbian Chamber of Commerce, AmCham and the Association of Employers Poslodavac (Employer).

“We will take a unanimous stand and present proposals, and if these solutions are not accepted, we will exert intense pressure on those who should do that,” Knežević said.

The director of the Union of Employers of Serbia, Dragoljub Rajić, agrees that a "simplification" of the Labor Law and a reduction in payroll taxes should constitute a priority.

For employers in Serbia, the payroll tax amounts to 64.5 percent, Rajić said, adding that employers' proposal is that it be 40 percent for average pay.

“This means that for every RSD 100 paid, an employer gives RSD 64.5 to the state…similar to some countries that are five of six times wealthier than Serbia, which constitutes a serious hindrance to employment,” Rajić told Tanjug.

“We must achieve a consensus and ensure that the payroll tax goes down, while at the same time launching a fierce fight against gray economy, and ensuring that those working on the black market be channeled into legal flows,” Rajić notes.

Representatives of the Confederation of Autonomous Unions of Serbia (SSSS) voiced concern on Tuesday that the announced changes to the Labor Law could be to employers' benefit only, adding that there are hints that some more restrictive measures could be introduced that “will further curb the already poor rights of workers.”

The SSSS will first wait for a draft bill and see the proposed measures, and then insist on consultations with other social partners, SSSS Vice President Zoran Mihajlović said.