Data Updating in The Central Register of The Compulsory Social Insurance and Decision on New Minimum Salary Per Work Hour for 2021
In the field of labour relations the end of 2020 brings new obligations for the employers. Namely, in order to harmonize the data in The Central Register of The Compulsory Social Insurance (CROSO) with the changes in the relevant regulations, employers are obliged to update certain data in CROSO. Another significant obligation for certain employers occurs at the end of each year and it arises from the introduction of new minimum salary for year to come. About the mentioned obligations, deadlines and the manner of their implementation, read our text bellow.
Data updating in the register of insured persons within CROSO
In the Republic of Serbia, the new Law on the National Qualifications Framework (“Official Gazette of RS“, No. 27/2018 and 6/2020) which established the National qualification framework of Republic of Serbia (NOKS) became effective on the 14th of April 2018. This law establishes equivalence between the level of professional qualification acquired before 14th of April 2018 with NOKS levels (level of qualification). Also, new Decision on the Unique Codex of Codes for Data Entry and Encryption in Labor Records (“Official Gazette of RS“, No. 56/2018 and 101/2020) regulating codes for: occupation, levels and types of qualification, countries and territories, municipalities and localities became effective on the 26th of July 2018. The implementation of the Decision was postponed for the 1st of January 2019.
These changes require using of new codes to mark certain data at CROSO in order to comply with the above-mentioned acts. New codes should be used to mark data on the:
- occupation, according to the occupation qualification, which is required for certain jobs, i.e., workplaces – section 16 in the insured person application, which is filled in accordance with the occupation code list from the new Decision on the Unique Codex of Codes for Data Entry and Encryption in Labor Records;
- type and level of qualification, i.e., education which is required for engagement on a certain jobs, i.e., workplaces – section 17 in the insured person application, which is filled in accordance with the type and level qualification code list from the new Decision on the Unique Codex of Codes for Data Entry and Encryption in Labor Records;
- type and level of qualification, i.e., education that the employee acquired – section 10 in the insured person application, which is filled in accordance with the occupation and professional qualification code list from the old Decision on the Unique Codex of Codes for Data Entry and Encryption in Labor Records from 1998 (in this part the Decision remained legaly effective until the the codes for qualifications for keeping records on the occupation acquired with certain education in NOKS system is introduced).
The latest changes of the Law on the Central Register of The Compulsory Social Insurance impose the obligation for applicants to implement these changes, i.e., to submit the application for updating the above-mentioned data within two years from the date of the enforcement of the Decision, which deadline expires on the 1st of January 2021 (initially, the deadline was until the 1st of January 2020, however the deadline was extended for another year given that the practical experience showed that employers face with significant difficulties in interpreting relevant acts in this area).
The data on the type and level of professional qualification are mandatory elements of the employment contract and Rulebook on the Organization and Systematization of Jobs. Although there is a discrepancy between the Labor Law and the changes in the relevant regulations (the Labor Law does not explicitly regulate levels of qualification), we believe that it is necessary to change Rulebook on the Organization and Systematization of Jobs and on the basis of this change, to amend the employment contracts in order of harmonization in this area and adequate data updating in CROSO. Namely, considering the fact that in accordance with the Decree on the Content, Form and Manner of Submitting a Single Application for Compulsory Social Insurance, Unique Methodological Principles and a Unique Codex of Codes for Entering Data Into a Unique Register of Compulsory Social Insurance (“Official Gazette of RS“, No. 54/2010, 124/2012 and 119/2013) the changes in register are carried out on the basis of appropriate evidence, the annex of the employment contract in this area can be considered as an appropriate evidence for conducting the data updating in CROSO.
For employers who do not update the data in CROSO on time, misdemeanour liability and fines are presrcibed, as follows:
- for employers – legal entities, a fine of 300.000,00 to 1.500.000,00 RSD;
- for employers – entrepreneurs, a fine of 10.000,00 to 500.000,00 RSD;
- for employers – natural persons, a fine of 5.000,00 to 150.000,00 RSD.
New minimum salary per work hour for 2021
According to the Labor Law (“Official Gazette of RS”, No. 24/2005, 61/2005, 54/2009. 32/2013, 75/2014, 13/2017 – decision of the Constitutional Court of the Republic of Serbia, 113/2017 and 95/2018 – official interpretation) the government of the Republic of Serbia made the Decision on minimum salary per work hour for 2021 (“Official Gazette of RS”, No. 116/2020). According to the Decision the minimum salary per work hour without tax and contributions for the period from January to December 2021 is 183,93 RSD.
The minimum salary is the minimum (guaranteed) right that an employee has for standard performance and time spent at work. It is determined on the basis of minimum salary per work hour, work time and tax and social contributions paid from the salary. The purpose of this right is satisfaction of the existential and social needs of the employee and his family members.
According to the Labor Law the payment of the minimum salary can be introduced on the basis of the Decision on the minimum salary whreby the reasons for this decision must be regulated in the general act or employment contract. Although the employee’s right to a minimum salary implies that the employee’s salary must be paid at least in this amount, the payment of the minimum salary should not be a rule in a business, considering that there should be reasons prescribed by the general act, i.e. the employment contract for its introduction. In practice these reasons implies the existence of disorders, i.e., difficulties in employer’s business activities. Considering the above mentioned, in the current conditions of reduction of the volume of business and income of a large number of employers as a result of COVID-19 epidemic, the legal framework for the introduction of the minimum salary has become especially important.
Bearing in mind previously mentioned, employers who in accordance with the employment contract pay the minimum salary or salary lower than the new minimum salary are obliged to make changes in the employment contract in order to harmonize the amount of salary with new regulations. Also, employers who consider introducing the minimum salary should check whether the general acts or employment contracts contain reasons for its introduction. If the mentioned acts do not contain relevant reasons, they must to be amended in order of regulating these reasons.
In addition to the risk of legal procedure in which the employee to whom the salary was paid in the amount lower then the minimum salary could require payment of the difference to the amount of minimum salary with interest, for employers who do not pay the minimum salary to the employee there is the risk of misdemeanour liability and fines, as follows:
- for employers – legal entities, a fine of 800.000,00 to 2.000.000,00 RSD;
- for employers – entrepreneurs, a fine of 300.000,00 to 500.000,00 RSD;
- for employers – natural persons, a fine of 50.000,00 to 150.000,00 RSD.