As of Monday, the taxes which the employers in Serbia pay on the salaries of new hires will be reduced by 70 percent compared to long-term employees, and no pension contributions will be paid for such persons.

According to the Serbian government's regulation on employment incentives adopted on May 12, the employers will not pay taxes on salaries for workers older than 45 years and younger than 30, while for the rest of the newly employed tax relief will be only partial.

In future, employers will not pay taxes on salaries of vulnerable employees, whereas in case of other categories of workers the taxes will be reduced by 30 percent.