The good news for workers: Domestic companies could pay twice as much for K-15 this year

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Will the domestic companies, this year, take advantage of the possibility of doubling the recourse for annual leave, the workers will know in about a month. The government “threw down the gauntlet” to the employers and as one of the measures from the Fifth Economic Package, offered an opportunity to increase the tax exemption threshold with income tax on vacation pay from the existing 40 to 80 percent, writes Free Press.

If the average salaries for December, January and February are taken as a basis for calculation, the minimum amount for vacation pay paid now would be around 11,300 denars. But if the new tax exemption of up to 80 per cent is used, the amount could be doubled. Currently, the amount provided for as a minimum in the Collective Agreement is 40 percent of the average of the three average net wages in the country published by the State Statistical Office, before payment.

As “Free Press” already wrote, the amount for K-15 will be recognized as an expense, which reduces the tax base of companies, and the reason for that, as Prime Minister Zoran Zaev announced last year, is to stimulate employers to give more amount. The text of the Draft-Law on Amending the Law on Profit Tax, which determines the unrecognized expenditures, has already been determined, which creates an opportunity to increase the amount of vacation pay, which will be treated as a recognized expenditure for tax purposes as a measure of the Fifth Economic Package.

The recourse payment should start soon, and applies to all employees who have worked for at least six months with the same employer. The obligation for payment, legally, but also according to the Collective Agreement is until the end of the year.

According to the General Collective Agreement, employers who have difficulty in operating, can pay a smaller amount of K-15, without specifying whether the company is at a loss. According to the information from the unions, they received reports last year for over 100 bosses, who did not pay at all or paid less recourse. According to the information from the State Labor Inspectorate, to what extent such cases have been reported, those employers who did not pay the vacation pay have received minutes and decisions with debt payment, and some have already been sanctioned.

The unions last year demanded that employers receive a higher tax exemption for holiday pay, and the government accepted and doubled the tax exemption threshold from 40 per cent to 80 per cent. The companies that showed good financial results have already paid from 25 to 28,000 denars for K-15 for this year, but there are still employers who did not pay last year’s recourse. Prime Minister Zaev has repeatedly appealed to companies that have the opportunity, and even those that show a loss, to pay recourse for annual leave.

Source: Free Press ( Слободен печат )