Increasing the minimum wage in Serbia is meaningless without regulating the tax system

The Association “Protector of Entrepreneurs and Businessmen of Serbia” assessed that in the upcoming negotiations of the Social and Economic Council on the amount of the minimum wage, the functions of trade unions and employers were “meaningless”, considering that state representatives announced the minimum amount in advance without intending to regulate taxes and contributions.
The civil society organization believes that the burden on low wages is a direct cause of the “huge black labor market”, which endangers registered employers and “contributes to excessive levies on small wages and small businesses”.
“We remind you that entrepreneurs and owners of micro companies are also employees in their companies, who feel the burden of huge levies on both salaries and small businesses. Instead of the message that it is more profitable to work illegally, the state apparatus should deal with a substantial change in the tax system in a fair, progressive and comprehensive way in order to improve the standard of employees,” the Protector of Entrepreneurs and Businessmen of Serbia said in a statement.
The association adds that the increase in the minimum wage of a few thousand dinars “has no effect”, because “tax” is charged on electricity and fuel bills, and the prices of basic foodstuffs have increased by several tens of estimates.
Negotiations on the amount of the minimum wage in the next year begin on August 23, and representatives of the Government of Serbia, employers and trade unions are participating in it.
The Serbian government has proposed increasing the minimum amount to around 300 euros.
Over 60 percent of employers surveyed by the Union of Employers of Serbia believe that the minimum wage should be increased, while 85 percent of them see a reduction in taxes and contributions to wages as a condition for increasing the minimum wage, N1 reports.