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Businesses paying workers the minimum salary likely to face issues

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All businesses paying workers the salaries lower than 345 euros will be negatively affected by the announced tax reform within the ‘Europe Now’ program, because the total costs for a minimum pay will go up, the Chamber of Commerce (PKCG) told Pobjeda daily.

This business association notes that the impact of this measure will depend on the strength, i.e. the size of the company itself, as well as the activities and development of the municipality in which it operates.

However, the PKCG says that companies which currently pay 350-euro net salaries or higher, that is, the largest part of companies, will have their costs cut.

The ‘Europe Now’ program envisages the increase in the minimum net salary to 450 euros, the abolition of health contributions, while the entire amount of a minimum gross salary will be nontaxable.

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