How Will Free Public Transport in Belgrade Affect Employers’ Transportation Compensation?
At the end of 2024, the mayor of Belgrade announced free public transport for all citizens. This decision raised an important question: Does this mean that employers will stop paying transportation compensation to their employees?
The decision to offer free transport has sparked numerous reactions. Employers, employees, and lawyers are now examining the impact of this change. The application of the Labor Law is crucial, as it defines employees’ right to transportation compensation. Mr Petar Kilibarda, senior attorney at STATT law firm, discussed this issue on TV Prva Live.
Employers and the Right to Transportation Compensation
The Labor Law requires employers to compensate transportation costs for employees if they do not provide their own transport. With the introduction of free transport, employers will no longer have transportation expenses. As a result, they will not need to provide compensation.
If employers decide to continue paying compensation, they will treat it as additional income. Consequently, taxes and contributions will apply.
Transport Outside Belgrade
For employees commuting from other cities or using night transport, the situation changes. In such cases, employers still need to cover transportation costs if public transport is unavailable. Additionally, employees who use their own vehicles are entitled to compensation, regardless of free public transport availability.
Possible Amendments to the Labor Law
Petar Kilibarda believes the Labor Law should undergo amendments to clarify situations where employees lack access to public transport or when transport is unavailable under certain conditions.
Impact on the Economy
Free transport may increase costs for businesses. The city might shift part of this financial burden onto businesses. In response, employers may raise prices for their products and services to compensate for these costs. This could influence citizens’ cost of living.
STATT law firm offers legal support to employers to help them comply with new laws and adapt to these changes.