Taxation of salaries of over RSD 60,000

Salaries in public sector in excess of RSD 60,000 will be reduced, Serbian Finance Minister Lazar Krstic announced today.

Krstic said at a government session that salaries exceeding RSD 60,000 will be reduced by cutting the difference between the limit of RSD 60,000 and the employee's salary by 20 percent. This practically means that those people whose salary now amounts to RSD 70,000 will receive RSD 68,000 in the future, the minister explained.

As Krstic said, the same principle will be applied to salaries of over RSD 100,000, but they will be decreased by 25 percent.

According to him, salaries in public sector are 30 percent higher than in private sector, while the number of workers in that sector is 5 to 10 percent bigger than in similar countries in the region.