New Law on financial support to the family with children brings decrease of administrative and financial obligations for employers

Belgrado, 20.08.2018.
The new Law on financial support to the family with children came into force on 1 July 2018 and brought numerous changes in the area it regulates, in terms of relaxing the administrative procedures of employer.

Among other things, parental allowance has been increased, the scope of the maternity leave beneficiaries has been expanded, the method of calculation of maternity leave compensation has been changed and the conditions for exercising the right to child allowance have also been changed.

However, employers will be mostly interested in a simplified procedure for exercising the right to maternity leave compensation.

Previously, the employer had to collect extensive documentation (which counted as many as 86 documents) and pay maternity leave compensation to an employee. The employer had the right to claim a refund of paid maternity leave only after receiving the Decision on maternity leave from local authority, which in practice lasted at least three months. Upon receipt of the Decision, the employer could apply for a refund and the funds would be paid to the employer at the end of the following month. The employer had to submit a refund request in person separately for every month paid.

Changes brought by new Law completely release the employer of these obligations. The employer is to issue a decision on maternity leave and absence from work for child care. Employee than submits remittance from physician, decision from employer and a copy of the current account to the local authority in charge. Other information relevant for maternity leave compensation will be provided by the local authority through the Central Registry of Compulsory Social Insurance (CROSO). Obligation of employer to pay maternity leave compensation and then demand a refund is cancelled, so the compensation will be paid directly from the state budget to employee.