Third State Aid Package – All Citizens to Get EUR 60, Employees to Get 50% of the Minimum Wage for Three Months, First Payment on April 8

The Government of Serbia has adopted a new, third set of measures, worth RSD 249.4 billion, entailing direct financial help to the citizens and the economy.

Minimum wages and direct payments

Direct support of 50% of the minimum wage over three months will be given to a total of 1,505,093 entrepreneurs and employees in micro, small, medium and large enterprises. The measures don’t include banks and financial institutions.

The measure comes into effect on March 1, the first payment is scheduled for April 8, the second for May and the third for June.

The money will be paid to special-purpose accounts, which will be opened for companies by the Treasury Administration, after which it will be redirected to the accounts of the employees. This procedure is implemented considering that direct payments can only be used for the payment of salaries and salary compensations for employees.

By accepting these measures, the companies oblige not to reduce the number of employees by more than 10% until the expiration of a three-month period from the payment of the final minimum wage and not to pay dividends. Companies will be able to apply for these funds from March 1, by filling out a form on the Tax Administration portal.

– Application is simple and is done through the website of the Tax Administration. The condition is that they can’t let go more than 10% of the employees within three months of the payment of the last minimum wage and that they can’t pay dividends – said Serbian Finance Minister Sinisa Mali.

In addition to the 50% of the minimum wage during a three-month period, another whole minimum wage (RSD 32,000 per worker) will be given to hospitality facility managers, travel agencies, licensed tourist guides and companions, as well as hotels, resorts and rent-a-car agencies. The payment of 50% of the minimum wage is to be done in April, May and June, and the payment of the whole minimum wage is scheduled for July.

City hotels will be given another form of direct state support in the amount of EUR 350 per individual bed and EUR 150 per accommodation unit.

Direct support will also be provided to the sector of passenger transporters and road transport and bus stations, which entails EUR 600 per bus in a six-month period.

Guarantee scheme for liquidity

In order to preserve the liquidity of the private sector, the state has decided to extend the current guarantee scheme by another EUR 500 million, and a new guarantee scheme for supporting the most jeopardized companies will be established as well. The details of the new guarantee scheme will be set through negotiations with banks, to the end of reaching the best conditions for jeopardized companies.

Money for citizens and pensioners too

Citizens of age, of whom there are 6.1 million, will get EUR 60 each through the new set of measures, and the payment is to be made in two installments, in May and November. Pensioners will get an additional EUR 50, amounting to a total of EUR 110 for each pensioner.

– This is the third economy stimulus package from the state, which helps the citizens and the economy overcome the coronavirus crisis. These packages prevent our people from losing jobs and help our citizens, primarily pensioners, survive – Serbian Prime Minister Ana Brnabic said at the presentation of the economy stimulus package.

Ministarstvo finansija Republike Srbije

Vlada Republike Srbije

Ministry of Finance

Government of Serbia

Ana Brnabić

Siniša Mali

economy stimulus package

economy support measures

coronavirus

minimum wages

payment of minimum wages

guarantee scheme