Category: Author’s post

Employers have to choose between hiring a foreigner or shutting down the business

Data from the National Employment Service show a steady growth of the number of foreign workers in Serbia. They have issued over 52,000 work permits in 2024, mostly to citizens of China, Turkey, Russia, India, and Nepal.
Although it has become easier to hire foreign nationals due to recent amendments to the Law on Employment of Foreigners, there are some challenges that employers still face, from language barriers to the risk of workers leaving the company.
Equally, the employment of foreign labour in Serbia has become easier due to legislative changes, investment in construction, the emigration of domestic workers, and high demand for workers in the hospitality industry. Nevertheless, reports of an agreement with Ghana on the import of labour have been denied by the Ministry of Labour.
As Jelena Jevtović of the Serbian Employers’ Union told Insajder, there are worker mobility agreements between Serbia and many countries, which causes an influx of foreign workers.
As she noted, they have submitted reform initiatives for the education system for years.
According to Jevtović, the aim of a list of shortage occupations is to facilitate the implementation of the Law on Employment of Foreigners.
It is also necessary to mention the Open Balkan initiative when it comes to employing foreign nationals. Nevertheless, not many people have used that option to enter the domestic labour market.
Also, Insajder discussed with the interlocutor educational profiles that Serbian employers most commonly employ, the procedure, and obstacles are when hiring a foreign worker.
The amendments to the Law on Employment of Foreigners brought a general digitalization last year.
The police, the National Employment Service, and the Central Registry together issue the “single residence and work permit,” and the foreign worker collects it at the Ministry of the Interior.
Nevertheless, the employer can have problems with it, because under the previous regulation, there was the assurance that only he could employ the worker with the permit valid for one year.
It is also necessary to mention issues arising with foreigners from countries under the visa regime. Some of them take advantage of the possibility to travel to other countries after receiving residency approval in Serbia.
Jelena Jevtović also mentions the diverse situation concerning the structure of foreign workers in relation to the parts of the world they come from, and where most of them originate.
Nevertheless, she assesses experiences with foreign workers as mostly positive.
Although, as she says, most foreign workers are generally satisfied with the conditions, there are things they don’t like.

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Reducing Poverty through Employment and Structural Reform is Kazakhstan’s Social Spending Strategy

Kazakhstan is making efforts to improve living standards. Official statistics reports the decline of the national poverty rate as of 2024 to 5%, down from 46.7% in 2001 and the increase of the real wages by 21%. The country doesn’t rely on direct cash transfers for poverty alleviation, but on employment creation and integration into […]

Deputy Minister promises boosted tourism and strengthened ties with China due to visa-free travel

Irakli Nadareishvili, Deputy Minister of Economy and Sustainable Development, and Han Jun, Deputy Director of China’s Civil Aviation Administration (CAAC), discussed strengthening civil aviation ties between Georgia and China at a meeting.
According to Nadareishvili, they should expand cooperation and increase the number of flights operated by Georgian and Chinese airlines. As he noted, passenger traffic has been significantly boosted by the recent introduction of visa-free travel.
The Minister said that the key role in this growth belonged to visa- free travel, and they will add new routes and increase flight frequency, in order to further enhance trade, economic relations, and tourism between our countries.
The number of air passengers traveled between Georgia and China increased by 45 % in 2024 compared to 2023. Direct flights to Georgia are currently operated by China Southern Airlines and Air China. Carriers on both sides demonstrate an increased interest for air cargo.
Givi Davitashvili, Director of the Civil Aviation Agency, and Zhou Qian, Chinese Ambassador to Georgia, also attended the meeting.

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The emigration from Kazakhstan reaches the lowest level in a decade

According to analysts, emigration from Kazakhstan reaches its lowest level in more than ten years. Basing on data from the National Statistics Bureau (NSB) of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan (ASPiR RK), they highlight shifting demographic and economic patterns within the country.
According to the report, only 1700 individuals left Kazakhstan for permanent residence abroad in January- April 2025. For comparison, 4800 people emigrated in the same period in 2024 (2.8 times more). Also, 8100 people entered Kazakhstan between January and April 2025, compared to 9,900 the previous year. This makes the migration balance remain positive, with more people arriving than leaving.
A consistent downward trend is underscored by a longer-term view. Around 155,700 people emigrated in 2000, while this figure had dropped to 12,700 by 2024. There were some notable upticks between 2006-2008 and 2013-2019. Nevertheless, the number of people immigrated to the country was almost two times more than the number who left in 2024 (23,900), what makes migration balance remain positive.
Geographically, Kazakhstan’s northern and eastern regions provide most emigrants. 47.9% of emigrants in 2024 came from the Kostanay, Pavlodar, Abai, North Kazakhstan, and East Kazakhstan regions.
As for destination, Russia continues to be the leader, receiving 69% of all Kazakhstani emigrants. Nevertheless, that number is decreasing dramatically: in Q1 2025, only 644 citizens moved to Russia, 75.5% less compared to the same period in 2024.
Germany occupies the second place with approximately 2,000 Kazakhstani citizens relocated there in 2024, but this number has also declined by 67.9%. Emigration to all traditional destinations has decreased generally, except for Kyrgyzstan. Gradually more people (about 300 annually) emigrate there, particularly from Kazakhstan’s southern regions.
According to the United Nations Population Fund, Kazakhstan’s economic development, increased labor demand, and the diminishing pool of ethnic migrants have caused a decline in emigration.
Another factor contributing to a new influx of migrants into Kazakhstan is population growth in southern Central Asian republics.
According to a 2024 public opinion survey conducted by the Demoscope Express Monitoring Bureau, among the 1,100 respondents, 78.5% said they had no plans to emigrate within the next two to three years. Just 6.9% wanted to emigrate, and 5.6% would like to emigrate but couldn’t do that.
The desire for higher income (24.5%), better employment opportunities (14%), and a perceived lack of prospects within Kazakhstan (23.9%) were the most common reasons for emigration. Studying abroad (11.7%), family reunification (2.6%), and returning to ancestral homelands (0.6%) were other motivations.

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Business people and experts claim the flat-rate taxation threshold changes

Despite significant changes in the economic environment, Serbian small business owners follow the flat-rate tax model for years with the key threshold of an annual turnover of up to six million dinars unchanged since 2013.
The problem is that consumer prices have increased by 70%, diminishing the real value of this threshold significantly and making it increasingly difficult to stay in the system.
Notably, only entrepreneurs who earn less than six million dinars in a calendar year have the right to flat-rate taxation.
But as an expert analysis in the Grey Book published by NALED states, the inflation has eaten away a substantial part of that amount, more and more people are falling out of the system because of basic market dynamics.
As for VAT threshold, there is an even greater inconsistency (eight million dinars). It is based on the last 12 months of business activity, rather than the calendar year, so entrepreneurs can enter the VAT system even if they have not yet surpassed the six million dinar mark in the current year, as the periods do not align.
Another frustrating thing for flat-rate taxpayers is the lack of flexibility in switching between different taxation regimes.
Notably, it is possible to change the taxation method only online via the eTaxes system up until 15 December for the following year. There are he only two transitions in the application: from flat-rate to self-taxation and from self-taxation to the personal salary system. It doesn’t allow a direct transition from flat-rate taxation to the personal salary system the following year.
A 2020 opinion from the Ministry of Finance further complicated this restriction (no. 430-00-7/2020-04), stating that an entrepreneur who loses the right to flat-rate taxation during the year cannot switch to personal salary payments in that same year and must wait until 15 December to apply for the following year.
Practically, this makes an entrepreneur who unintentionally or due to business growth surpasses the eight million dinar threshold exit the flat-rate system and enter the VAT regime.
Analysts in the Grey Book suggest amendments to raise the upper turnover threshold for flat-rate entrepreneurs in the year preceding from six million to eight million dinars, as Croatia and Montenegro did.
To solve the problem, the Ministry of Finance should issue an opinion or enactment on the application of Article 33a of the Personal Income Tax Law, stating that a flat-rate entrepreneur may opt for personal salary taxation upon exceeding the threshold.

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Priority tasks for ensuring safe working conditions in production are outlined during the year of vocational professions

Prime Minister Olzhas Bektenov chaired a government session focused on ensuring safe working conditions in production and the digitalization of the labor sector.
As the head of the Government noted during the meeting, the Head of State set specific tasks to raise the prestige of the Working Person by declaring 2025 the Year of Vocational Professions.
Аccording to Minister of Labor and Social Protection of the Population Svetlana Zhakupova, the measures being taken have led to a decrease in workplace injuries by 16.9% as of May 1, 2025, compared to the same period in 2024.
Meanwhile, the Prime Minister of Kazakhstan calls for using modern approaches to ensuring workplace safety.
Bektenov reminded that outdated equipment, delayed modernization, and the absence of new technologies often lead to an increase in injuries. Therefore, early warning and danger alert systems help respond quickly in case of emergency risks. Also, employers are obliged to ensure labor safety, automation, and digitalization that eliminate injuries and, especially, human fatalities to reduce injuries and accidents.
As the Prime Minister noted, it is necessary to develop a unified approach to organizing labor protection and to ensure the interconnection of information systems in this area. Simultaneously, of all government bodies, regional akimats, and enterprises must work together. He also drew attention to strengthening the monitoring of labor law violations, including through the use of the Digital Map of Enterprises. Bektenov instructed the Ministry of Digital Development, together with government bodies, to create an integrated digital ecosystem in the field of labor protection by December 1 of this year.
He emphasized the extremely important role of employers’ participation in labor protection matters, as they must ensure the conclusion of mandatory insurance contracts for employees against workplace accidents. Olzhas Bektenov added that enterprises should actively implement the principle of zero injuries, as well as an assessment and management system of occupational risks that meet international standards.
After the Government session, the Ministry of Labor and Social Protection of the Population and relevant government agencies got the instructions to develop legislative amendments by November 1 of the current year to prevent employers from concealing workplace injuries.
Also, the Ministry of Industry and Construction got the instructions to ensure the mandatory installation of special equipment for occupational safety and health at enterprises in the industrial and construction sectors by the end of the year.
Finally, the task of the Ministry for Emergency Situations was to inspect enterprises for compliance with industrial safety standards by the end of the current year.

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Unemployment below 4% and average salary above 3,500 GEL by 2028 are the programmatic goals

As Prime Minister Irakli Kobakhidze said during a government meeting, elimination of poverty once and for all and economic growth are key national goals. The programmatic goal is to reduce unemployment below 4% and to raise the average salary above 3,500 GEL by 2028.
As Kobakhidze said, continuation of Georgia’s economic development is very important, as the country is a leader not only in the broader region but also across Europe in terms of economic growth.
The Prime Minister reported that the economic growth in April was 7.5%. Meanwhile, the average growth for the first four months was 8.8%, what makes Georgia one of the frontrunners in terms of economic growth, both regionally and Europe-wide. So, the goal is to maintain this pace of development.
The increase of the number of employed persons in Georgia between 2022 and 2024, over a span of three years, was 185,000, and the growth of the average salary was 917 GEL. Undoubtedly, a broad segment of the population feels the country’s economic growth, and it is necessary to keep moving forward at this pace. Economic growth is the key factor to eliminating poverty which is one of the primary national goals. To achieve that, it needs to ensure continued rapid economic development.
The targets of the government are very clear: the programmatic goal is to bring unemployment below 4% and to raise the average salary above 3,500 GEL by 2028. Fully accepting the responsibility, they expect to achieve them at the current pace.
Meanwhile, GeoStat published new data concerning poverty for 2024. They reported the poverty rate at 11.8% in 2023. In 2024, it decreased by 2.4 percentage points and achieved a single-digit figure of 9.4% for the first time since the 1990s. Kobakhidze reminded that in 2012, when Georgian Dream came into power, more than 1.1 million people in Georgia were living below the poverty line. Today that figure has decreased below 350,000.
Recognizing the evidence of the progress, the Prime Minister highlights that the government’s ultimate goal is to eliminate poverty entirely in Georgia. They are moving rapidly in that direction, having an absolutely realistic specific programmatic goal in this area — poverty reduction below 4% by 2028. Irakli Kobakhidze promised that at this pace, it is possible to eradicate poverty in Georgia in the medium term.

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Average working and leisure hours in Kazakhstan

Analysis made by Finprom.kz investigates average working hours across different employment sectors in Kazakhstan and typical leisure activities.
There were 9.3 million registered employed citizens (a 1.3% increase compared to the same period last year) in Kazakhstan, as of the first quarter of 2025. Nearly 7.7 million people work standard hours ranging from 36 to 40 per week (a 7.5% year-on-year increase).
On the contrary, there were fewer people working overtime (a 4.9% decrease).
An average working week in Kazakhstan is now 39 working hours (one hour more, compared to last year). For men the average number is 40 hours weekly, for women it is about 38. Working overtime is more frequent among employees (on average 41 hour per week, compared to 36 hours for the self-employed).
The longest working week, averaging 43 hours, is in mining sector. Wholesale and retail trade, transport, logistics, and administrative services report average 42 hours. The working week in manufacturing, water supply and waste management, construction, and hospitality is about 41 hours.
The shortest working week (33 hours on average) is in agriculture, forestry, and fishing. People work around 39 hours in finance, insurance, and education.
An average of 42 hours per week makes industrial, construction, and transport workers, as well as operators and drivers top the list of occupational groups. Then follow trade and service sector employees with 41 hours. After them come farmers, fishermen, and unskilled laborers with average 36 hours, while managers, civil servants, and technical staff work around 40 hours. Specialists work 39 hours a week on average.
The number of Kazakhstanis who work less than a standard week (approximately 332,800) decreased by half compared to the previous year due to lack of work (122,800 people), reduced hours (56,700), sufficient income (34,200), employer decisions (31,500), and flexible schedules (18,300).
Official 2024 statistics reports that the average Kazakhstani spends most of their weekday attending to personal needs such as sleep, hygiene, and meals, totaling 12 hours and 6 minutes on workdays and 13 hours and 57 minutes on weekends.
The largest share is taken up by sleep: 8 hours and 48 minutes on weekdays and more than 10 hours on weekends. Around 1 hour and 49 minutes during the week and 2 hours and 5 minutes on days off are accounted for meals and drinks and approximately 1 hour and 21 minutes on weekdays and 1 hour and 33 minutes on weekends for hygiene and self-care.
Work takes the second place in terms of daily time use, averaging 5 hours and 16 minutes on weekdays and just 36 minutes on weekends.
Third place belongs to leisure activities (cultural events, sports, reading, and media consumption)— 2 hours and 40 minutes on weekdays and nearly 4 hours on weekends.
Household responsibilities also take considerable time from Kazakhstan is, especially on weekends (about 3 hours and 32 minutes on unpaid domestic work and family care).

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A new employment strategy is being created in Ukraine

The process of creating a new employment strategy is taking place in Ukraine.
According to the Ministry of Economy, its main goal is to give the chance to work to citizens who are struggling to find employment, particularly veterans, individuals with disabilities, women, older adults, internally displaced persons (IDPs), and Ukrainians living abroad. Around 4.65 million IDPs are registered in Ukraine currently, and nearly two million of them are of working age. Moreover, over 6.9 million citizens live abroad. As the Ministry of Economy says, the aim of this new strategy is making inclusion essential for sustainable economic growth, not optional.
They are proposing various solutions: enhancing career counseling, adopting internship programs, promoting professional retraining, implementing retraining initiatives for veterans, and endorsing integration programs, among others. As a result, as the State Employment Service has reported, there was an increase in job vacancies that offer housing benefits in response to the personnel shortage in Ukraine.
The Unified Vacancy Portal currently shows over 230,000 job postings available daily, including more than 2,000 job openings with housing provision listed since the start of the year. The increase compared to the same period last year attains 30%. Employees found 3,500 vacancies including those offering housing benefits over the past year, especially in Kyiv and the surrounding areas.

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