Serbia to scrap hiring incentives for people with disabilities, sparking rights group fears

Serbia's Ministry of Finance intends to eliminate tax incentives for employers who hire people with disabilities, a move that disability rights advocates say undermines inclusion efforts in the country. The proposed changes, which would take effect in January 2027, are currently undergoing public debate, with comments due by June 21.

Under current law, employers hiring individuals with disabilities for an indefinite period are exempt from paying income tax on those employees' salaries for three years. This incentive has been a key mechanism for encouraging inclusive hiring practices. However, organizations like the Forum for Youth with Disabilities (FMI) are deeply concerned that removing these benefits will significantly decrease employer motivation and interest in hiring people with disabilities, potentially leading to a direct reduction in employment for this group.

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This measure is particularly concerning in the context of the fact that the labor market in Serbia is still not inclusive enough. Although active employment policies formally exist, the funds allocated for them have remained at approximately the same level for years.

FMI highlighted that the labor market in Serbia remains insufficiently inclusive. They pointed out that while active employment policies exist, the allocated funds have remained stagnant for years. This situation is particularly worrying for young people with disabilities, who already face multiple barriers to entering the workforce, including a lack of work experience, employer prejudice, and inaccessible workplaces. Abolishing these incentives could further marginalize them and hinder their initial steps toward employment.

The organization argues that instead of removing support measures, Serbia should enhance them. FMI suggests better targeting of incentives, particularly for young and long-term unemployed individuals with disabilities, increasing funding, and introducing new mechanisms to stimulate employment. They also stress the importance of systematically monitoring the effects of these measures.

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We believe that not only is it unjustified to abolish existing support measures, but it is also necessary to improve them – through better targeting, especially towards young people and the long-term unemployed, by increasing funds and introducing new mechanisms to encourage employment.