Introduction
Starting 1 January 2025, several key updates to Serbia's tax and contribution regulations have come into effect. These changes, introduced via amendments to the Law on Citizens' Income Tax, impact the non-taxable income threshold, as well as the minimum and maximum contribution bases, reflecting the government's efforts to adjust financial policies to current economic conditions.
Key Updates
Non-Taxable Income Threshold
The non-taxable income threshold has been increased from RSD 25,000 to RSD 28,423, offering additional relief to taxpayers and increasing take-home pay for many individuals.
Minimum Salary Adjustments
The hourly minimum wage has risen by 13.7%, moving from RSD 271 to RSD 308. Consequently, the monthly minimum salary for 160 working hours increases from RSD 49,280 to RSD 56,672 for 184 working hours.
Contribution Bases
The minimum contribution base is now set at RSD 45,950, calculated as 35% of the average salary. The maximum contribution base has been adjusted to RSD 656,425, equivalent to five times the average salary.
Stable Contribution and Tax Rates Contribution and tax rates remain unchanged from 2024:
- Pension and Disability Insurance: 14% (employee) and 10% (employer)
- Health Insurance: 5.15%
- Unemployment Insurance: 0.75%
- Income Tax Rate: 10%
Upcoming Adjustments
From 1 February 2025, additional changes are anticipated, including updates to non-taxable allowances for public transportation, per diems for business trips (both domestic and international), and provisions for various types of solidarity aid. These measures aim to align benefits with inflation and current living expenses.
Eurofast's Expertise
Eurofast is here to help businesses and individuals navigate these regulatory updates effectively. Our team provides expert guidance to ensure compliance while optimizing financial and payroll processes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
