Home Economy Srpska introduces a solidarity contribution: New burden on workers wages

Srpska introduces a solidarity contribution: New burden on workers wages


According to estimates of the Ministry of Finance, the expected revenue of the Solidarity Fund for reconstruction of the Republika Srpska after the floods, the funds to be derived from a special solidarity tax on the incomes of workers is around 65 million KM. The amount of special contributions to be made by pensioners should be around 4.5 million KM.

These details are set out in the proposed law on the special contribution to solidarity, which is one of the ten laws that were proposed in urgent procedure by the Government of the RS for the rehabilitation of the flood damage Srpska.

The National Assembly will consider the legislation on Friday, 13 June.

The proposed law introduces a solidarity contribution whose extraction is provided from the net income of the personal income of all individuals in the RS  (wages, benefits arising from contracts, fees for membership in the management and supervisory boards, councils, commissions), as well as from pensions and the funds of the income payers, from their costs (cost of time), while the beneficiary is the Solidarity Fund for reconstruction of the RS.

This fund shall be managed by the board of directors consisting of 11 members, representatives of the Government, respective mayors, and there will be one representative of employees in the RS, as well as international institutions or donors. An employee representative shall be present because a large part of the funds is coming from the employees personal income.

The Managing Board of the Fund will be appointed by the government, and the president of the Board of Directors will be the Prime Minister. The responsibilities of the Fund are the establishment and conduct of a single registry of damages, as well as the management and disposal of earmarked funds for the reconstruction of the RS.

Control over the collection and distribution of funds will be carried out by the Supreme Audit of the public sector within their jurisdiction, as well as a working body of the National Assembly of RS, whose head will be will be a deputy of the largest opposition party.


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