Vučić explained layoffs in the south by a “significant increase in wages”

The President of Serbia, Aleksandar Vučić, explains the closure of several foreign companies’ plants in the south of Serbia in the last few months by “significant increase in wages”.
At first, 1.250 workers stayed unemployed due to the closure of Benetton and Johnson Electric factories. Then 250 workers lost work when Centaur left Vranje. Moreover, Trendtekst in Bela Palanka and Vranje Solpro fired 50 workers each.
Similarly, the Leonija plant in Malošišt will have been closed by the end of the year, leaving 1.900 workers out of a job.
According to some employers, such as Centaur, one of the reasons for leaving was the increase in the minimum wage in Serbia. It grew extraordinarily in October and now attains 500 euros (58.630 dinars) and will increase even more in January to 550 euros.
According to the latest available data, the average salary in Serbia in September 2005 was 109.147 dinars, with the median net salary of 85.267 dinars. It means that half of workers earned up to the specified amount.
Another reason that the state leadership blamed for the departure of companies was the blockades that marked the year 2025.
According to economist Saša Đogović, an extremely high degree of political crisis, an extremely high degree of corruption in the country and the lack of a stimulating institutional environment are the reasons for the absence of foreign investments.
Nevertheless, on Thursday (December 11), the Italian company Ariston opened a new plant in Niš and by the end of the year it will have employed 175 people.
This company will produce cylinders and other parts for heat pumps.
As Vučić said during the opening of the plant, the people of Nis will earn decent wages due to this factory, but consumption in restaurants and shops in Nis will also increase.
He also added that this is the tenth or eleventh factory opened in Niš during his presidency.
As New economy reports, the state provided 22,2 million euros through subsidies for the Ariston plant laid in July 2024.
The commitment of the investor is to employ at least 300 new workers for an indefinite period by the end of 2027 and to invest at least 75 million euros.
According to the contract signed by Ariston and the Ministry of Justice in 2023, the share of the state subsidy of the cost of the entire investment is 29,6 percent.
It is also stipulated that the salary costs for new employees, in the two-year period after reaching the full employment, foreseen by the project, should be at least 7,2 million euros.

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