What the survey among employers reveals – Are entrepreneurs in favor of a minimum wage increase and under which conditions?

Close to two thirds of business people have estimated that there is a basis for an increase of the minimum wage, but, in order for the salary increase to be sustainable, long-term and acceptable for companies, it is necessary to reduce the wage taxes and contributions, the Serbian Association of Employers announced today.

– Most employers, 63% of them, stated that an increase of the minimum wage was necessary, which requires several conditions to meet, the first of which is a reduction of the wage taxes and contributions, for which 85% of the business people voted – the association says in a press release following a survey carried out at micro, small, medium and large enterprises.

It is added that the percentage of the business people who are in favor of a minimum wage increase marks an extraordinarily large growth compared to the 15% of the employers who supported it during the period of the strongest Covid-crisis in 2020.

As said, the increase is big even compared to 2018, when the proposition was supported by 43% of those surveyed, and 2019, when it was supported by 46%.

An increase of non-taxable wage components, as a requirement for an increase of the minimum wage, is supported by 55% of the subjects, and 44% consider the suppression of illegal employment a very important factor when it comes to sustainable operations at Serbian companies.

Based on this survey, the Serbian Association of Employers has formulated several propositions which can enable a sustainable growth of the minimum wage, the first of which is an increase of the non-taxable amount, that is, the removal of fiscal charges on minimum wages.

The second proposition is for the taxes and contributions for all employees, as well as administrative procedures and costs, to be reduced.

The third proposition is to implement tax exemptions for new employees and persons over 45 years of age.

The Serbian Association of Employers will present these propositions during the negotiations with representatives of the Government of Serbia and the trade unions, which are to begin in a week.

Unija poslodavaca Srbije Beograd

Vlada Republike Srbije

Serbian Association of Employers

Government of Serbia

trade unions

minimum wage

survey

entrepreneurs

minimum wage increase