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UNEMPLOYMENT / DEC. 27, 2012
version 20, draft 20

Measures for Increasing Employment, Liquidity of Companies

Press Release: Published 19 April 2011

Deputy Prime Minister Verica Kalanovic announced today that in May the government will consider short-term measures for increasing employment, reducing illiquidity in the economy and greater discipline in the registration of legal entities.

During a break in the meeting of the Managing Board of the Serbian Chamber of Commerce, Kalanovic said that at the initiative of her cabinet and the Ministry of Economy and Regional Development, a relief measure for reducing taxes for new employees will be proposed.

The Deputy Prime Minister specified that in the first year, the relief will be 50%, in the second 40% and in the third 20%.

She explained that the measure will be aimed at channelling workforce from the grey economy to legal flows. She added that there is a proposal that employers pay minimum contributions for pension insurance and that the state covers with subsidies part of the income tax during the first two years since hiring a new employee.

The second measure will deal with increasing liquidity and the third with tighter discipline in registering new companies and introducing a registry of disqualified companies, Kalanovic said.

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