No agreement on minimum wage
At the second session of the Socio-Economic Council (SES), no agreement was reached on the minimum wage for 2026, and the next meeting has been scheduled for 29 August, when negotiations will continue.
Representatives of the Government of Serbia and employers stuck to their original positions, honorary president of the Employers’ Union, Nebojša Atanacković, confirmed for Biznis.rs, stressing that if no agreement is reached, the Government will make the decision on the minimum wage on 11 September.
The Ministry of Finance has proposed a 10.1 percent increase in the minimum wage for the coming year, which would amount to 550 euros (around 64,443 dinars) per month, along with a 20.4 percent increase in the non-taxable portion of income. Employers believe that the increase planned for October is sufficient for next year as well, and that as of 1 January 2026 the minimum wage should not be raised further.
“Both the Government and employers have stuck to the same conclusions reached at the first meeting of the working group. The only ones demanding change are the trade unions, who want the minimum wage raised to 70,000 dinars from 1 January, which would mean an hourly rate of 402 dinars instead of the current 308. At the same time, unions want talks with the Government to increase the total budget allocation for certain sectors, as raising the minimum wage will cause those on the lowest pay to move closer to salaries that were previously above it. For example, managers in public utilities could end up earning more or less the same as direct workers,” explained Atanacković.
Although, as he noted, this applies to the public sector, a similar situation exists in the private sector because the minimum wage compresses and moves closer to other wages.
“We did not interfere in these talks since our membership does not include budget-funded branches, but alongside a higher minimum wage, unions are also demanding an increase in public sector salaries,” Atanacković pointed out.
“If we take into account that the current hourly minimum wage is 308 dinars, and that from 1 January it could rise to 402 dinars, many workers currently earning 360–370 dinars per hour would fall below the new minimum, which means the number of minimum wage earners in the public sector would increase,” Atanacković concluded.
Unions ready to protest
The Confederation of Autonomous Trade Unions of Serbia (SSSS) has proposed that the minimum wage for 2026 be set at 70,000 dinars. They assessed the Government’s proposal of a 10.1 percent increase as insufficient, arguing that inflation would soon “eat it up.”
On Monday, the SSSS held a round table titled “Minimum wage and its impact on salaries in Serbia for 2026,” where preliminary results of a survey by SSSS and UGS Nezavisnost on household income and expenditure were presented. These findings will serve as an important argument in the social dialogue.
According to SSSS president Zoran Mihajlović, the consumer basket for a family of four with two employed members already exceeds 100,000 dinars, which clearly shows that the current minimum wage level does not provide even a basic standard of living.
As stated on the union’s website, it was emphasised that if no agreement is reached with the Government and employers, unions will be forced to resort to other mechanisms, including protests.
After the first SES session, Zoran Ristić, advisor for economic and social affairs at UGS Nezavisnost, told Biznis.rs that this union highlighted the need for the minimum wage to reach around 60 percent of the average salary, which is the EU standard, pointing out the necessity of a higher increase than that proposed by the Ministry of Finance.
“For a long time, we have been stressing that the minimum consumer basket does not reflect the real needs of citizens. We will propose that the hourly wage be increased to between 400 and 405 dinars, meaning a minimum monthly salary of around 70,000 dinars,” said Ristić.
How much has the minimum wage increased in the past five years?
The Socio-Economic Council decided on an extraordinary increase in the minimum wage from 1 October this year of 9.4 percent, from 53,592 dinars to 58,630 dinars, which in euros is an increase from 450 to 500. The hourly wage will therefore rise from 308 to 337 dinars.
Over the past five years, the minimum wage has risen by 164 dinars per hour. In 2020, it was 172.54 dinars, in 2021 it reached 183.93 dinars, in 2022 it was 201.22 dinars, in 2023 it climbed to 230 dinars, and in 2024 the hourly minimum was set at 271 dinars before tax and contributions.
Since 1 January, the lowest wage has been 308 dinars per hour, an increase of 13.7 percent, and for the first time, it covered the minimum consumer basket. This rate will remain in effect until 1 October, when the hourly wage will be raised to 337 dinars.
The minimum wage is determined by the Socio-Economic Council (SES), which consists of representatives of the Serbian Government, representative trade unions, and employers’ associations. If trade unions and employers fail to reach an agreement within 15 days from the start of negotiations, the Government of Serbia is obliged to make a decision on the minimum wage within the next 15 days.
“When determining the minimum wage, particular account is taken of: the existential and social needs of the employee and their family, expressed through the value of the minimum consumer basket; employment trends in the labour market; GDP growth rate; consumer price movements; productivity trends; and movements in the average salary in the Republic,” states the Labour Law.
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