Unions demand minimum wage of 600 euros for 2026: what do employers say?
The increase of the minimum wage in Serbia as of October 1, from 53,592 dinars (457 euros) to 58,630 dinars (500 euros), which would remain in effect until the end of this year, is sufficient even for 2026, said yesterday the honorary president of the Union of Employers of Serbia (UPS), Nebojša Atanacković, assessing that the economy cannot, without greater state support, further increase the minimum wage next year.
After yesterday’s meeting of the Socio-Economic Council, where negotiations on the minimum wage for 2026 began, he stated that one-third of the economy, out of about 450,000 business entities, cannot withstand a new increase for 2026, following the October 1 raise that will apply until the end of this year.
Currently, the minimum wage is 53,592 dinars (457 euros), and as previously announced, it should rise by 9.4% on October 1 to 500 euros, or 58,630 dinars. For 2026, President Aleksandar Vučić and the Ministry of Finance announced an increase to 550 euros, or 64,460 dinars.
Most of the economy, according to Atanacković, supports an increase in the minimum wage, but with greater state assistance than currently planned, namely raising the non-taxable portion of income by 20%, to 34,221 dinars. “Real growth of the minimum wage should correspond to GDP growth and inflation, which is about six percent. However, an increase of 9.4% is planned for October 1, and 10.1% for next year. Anything above six percent is only possible with greater tax relief from the state,” Atanacković told the Beta news agency.
He added that raising the non-taxable portion of income for 2.9 million employees would mean that this “gift” would also go to companies that do not need it because they can already pay salaries higher than the minimum. For them it is a gift, while for those unable to pay more than the minimum wage, the assistance is minimal. Atanacković stressed that the tax system should be changed, exempting from payroll taxes those who cannot pay more than the minimum wage. Granting relief to all companies, just because of those unable to pay more than the minimum, is, in his view, throwing money away. At the Ministry of Finance, he recalled, officials previously said they could not find experts capable of designing a new tax system.
An additional difficulty, he noted, is that representatives of the Ministry of Finance claim that until the budget revision at the end of the year, tax relief for employers in the form of an increased non-taxable portion of income cannot be provided.
He added that talks on raising the minimum wage perhaps should have waited until it became clear what Serbia’s economic growth would be, since almost all economies, except China’s and India’s, are in decline. Under such conditions, it is pointless to talk about wage increases, and circumstances might even require wage cuts.
According to official statistics, about 90,000 employees in Serbia receive the minimum wage, but Atanacković noted that those earning only a few thousand dinars more are not in a much better position, meaning that all wages below 60,000 dinars are essentially minimum. Workers receiving such wages number around 400,000, so most of the economy considers an increase necessary, but with stronger state support.
The unions will state their position on the proposed minimum wage amount at the next meeting, while the UGS “Nezavisnost” union has already announced it will demand 600 euros, or about 70,000 dinars.
Among the social partners – the Government of Serbia, employers, and trade unions – the position of the Confederation of Autonomous Trade Unions of Serbia remains unknown.
If no agreement is reached, under the Labor Law, the minimum wage is set by the state.
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