Government of RS Planning to Increase Non-taxable Part of Income – Regulations to be Changed in June

The Government of the Republic of Srpska is to increase the non-taxable part of the income through the amendments to the tax regulations in the next month, which aims to increase employees’ net salaries and reduce the pressures related to the increase of salaries as a consequence of the lowered supply of labor force in the Republic of Srpska, the Union of Employers’ Associations of the Republic of Srpska announced.

The union says that, at their initiative, on Friday, May 7, a meeting was held with the prime minister of the Republic of Srpska, Radovan Viskovic, about the reduction of the taxation of labor, the suppression of informal economy and the launching of the process of employee vaccination.

As emphasized, the negotiations and the analysis of the possibilities regarding the level of the increase of the non-taxable part of the income are in progress.

– Considering the abuse of the institution of partial working hours, that is, registering workers for less than eight hours of working time, the Government of the Republic of Srpska will, through the amendments of the regulations, determine the minimum principal amount for the taxation of labor in the amount of the lowest salary in Srpska, regardless of the length of the working time – the announcement says.

Representatives of the union pointed out the problem of being absent from work due to the coronavirus and the isolation of workers and provided suggestions for the stimulation of the vaccination of workers.

– Considering the certain availability of substantial quantities of vaccines in the upcoming period, the union has also taken upon itself to examine the needs of the employers and taking part in initiating and realizing the process of the vaccination of workers – the union says and points out that the questionnaire regarding the vaccination of employees can be filled out at the following link.

The union says that the deadline for the application for the vaccination of employees is May 14, at 4 PM.

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