Amendments to the Law on Social Security Contributions (SSC) Law has been published in the Official Gazette of the Republic of Serbia No. 86/2019 dated 6 December 2019. The most important changes are presented below.
The method of determination of minimal and maximal monthly SSC base has been changed. The SSC base is determined on the basis of paid salaries in the period for the previous 12 months starting from September (not from October as it was before) in the current year.
The SSC rate for pension and disability insurance has been reduced, from 26% to 25.5%. The amendment relates to SSC paid by the employer, so the SSC rate of pension and disability insurance paid by the employer is 11.5% instead of 12%.
The period of application existing tax reliefs is extended (ending on 31 December 2020, instead of 31 December 2019), based on the salaries of new employees in regard to the right to a refund of the paid SSC.
The new articles provide exemption of SSC paid by the employer for new immigrant taxpayer, persons who have an employment relationship with a newly established company that performs innovative business activity and for qualified new employees. The above-mentioned provisions are regulated in order to bring the SSC Law into line with the latest amendments in the PIT Law in the part related to employer benefits.
The right to SSC exemption for qualified new employees, employer will realize as follows:
- 100% of the pension and disability insurance SSC for salaries paid from 1 January 2020 to 31 December 2020;
- 95% of the pension and disability insurance SSC for salaries paid from 1 January 2021 to 31 December 2021; and
- 85% of the pension and disability insurance SSC for salaries paid from 1 January 2022 to 31 December 2022.
The amended and new provisions of the SSC Law will apply from 1 January 2020, except for the provisions relating to the SSC exemption for salaries paid by the employer who performs innovative business activity, which will apply from 1 March 2020.