Adoption of the Europe Now program will certainly increase the costs of entrepreneurs, micro and small enterprises, which could thus become endangered. This especially refers to those in less developed parts of Montenegro, as well as economy sectors recognized by lower wages, the Montenegrin Employers Federation (UPCG) has told Pobjeda.
The government’s tax reform program, which will take effect on 1 January if it receives support in Parliament, envisions, among other things, increasing the minimum wage from €250 to €450, reducing the workload from 39% to 21%, abolishing social security contributions and increasing the average earnings to €700, and the introduction of a non-taxable portion of income up to €700 gross.
“Given the announced values, the increase in labor costs will be suffered to a greater or lesser extent by businessmen who pay net salaries below €330. Employers whose employees receive more than €330 net are to face a reduction in costs, while employees will have an increase in net wages”, the UPCG explains.
