Minimum wage payments begin for more than one million employees

Payment of minimum-wage subsidies for around 1,1 million employees at 237.000 companies in Serbia that applied for this form of government support begins today, with the money to be paid into the companies' designated accounts.

Finance Minister Siniša Mali said the state is allocating 33 billion dinars for the first payment, while the total amount will be three times higher, as payments will cover three minimum wages per employee, totaling over 90 billion dinars.

Mali said that 237.000 employers had requested government assistance in the form of three minimum-wage payments totaling 750 euros (about 90.000 dinars), and that more than 1.100.000 employees had registered.

Since January this year, the average minimum wage in Serbia has been 30.022 dinars, while the minimum hourly wage has been 172,54 dinars (net) since 1 January.

Those eligible for state assistance include entrepreneurs, lump-sum-tax entrepreneurs, their counterparts in the same status—farmers—and legal entities classified as micro, small or medium-sized businesses. The payments will be made in three installments—in May, June and July this year.

As for large legal entities, they are entitled to non-refundable financial assistance amounting to 50 percent of the basic net minimum wage for March 2020, for employees whose work was suspended by official decision after the state of emergency was declared.

The payments into their accounts will also begin today, amounting to 50 percent of the minimum wage for March, followed by further payments in June and July. They are also required to open a dedicated account into which the government will deposit the money.

A company loses its right to use tax benefits and direct payments if, from the introduction of the state of emergency until three months after the final direct payment, it reduces its workforce by more than 10 percent.

RTV