Abolition of Tax and Social Security Contribution Incentives for the Employment of Persons with Disabilities and Unemployed Persons Registered with the National Employment Service.
The public consultation, initiated pursuant to the Government’s Conclusion of 28 May 2026 regarding the draft amendments to the Personal Income Tax Law and the Law on Mandatory Social Security Contributions, was concluded on 21 June 2026. The proposed amendments provide for the abolition of incentives for the employment of persons with disabilities, as well as certain categories of unemployed persons registered with the National Employment Service (NES).
Amendments to the Personal Income Tax Law
The amendments to the Personal Income Tax Law provide for the deletion of Article 21g of the Personal Income Tax Law, under which an employer was exempt from the obligation to pay salary tax for an employee with a disability for a period of three years from the establishment of indefinite-term employment.
At the same time, the deletion of Article 21d is also proposed. This provision enables micro and small business entities, as well as entrepreneurs, to obtain a refund of 75% of the salary tax paid for newly employed persons taken from the NES register.
It is important to emphasise that employers who acquired the right to use these incentives before the entry into force of the amendments will retain the possibility to use them until the expiry of the statutory period.
Amendments to the Law on Contributions for Mandatory Social Insurance
The draft amendments to the Law on Contributions for Mandatory Social Insurance provide for the deletion of Articles 45b and 45v, which regulate the corresponding incentives related to the calculation and payment of contributions for newly employed persons with disabilities, and for certain categories of newly employed persons registered with the NES, respectively. In this manner, both tax and contribution-related incentives that have so far accompanied these forms of employment are envisaged to be abolished simultaneously.
If the proposed solutions are adopted, their application is envisaged as of 1 January 2027.
The abolition of these incentives represents a significant change in the system of tax incentives for employment and raises the question of whether new support mechanisms will be introduced for the employment of persons with disabilities and other categories of the population that are more difficult to employ. On the other hand, employers employing persons with disabilities will no longer benefit from contribution-related incentives, which may significantly affect employers’ financial projections, as well as employment dynamics.
For additional information or consultations, the Tasić & Partners team is at your disposal.