Association of Serbian Employers: Increasing minimum wage to EUR 500 sufficient for 2026 as well

The increase in the minimum wage in Serbia from October 1 from 53,592 dinars (EUR 457) to 58,630 dinars (EUR 500), which would be valid until the end of this year, is sufficient for 2026 as well, said the honorary president of the Association of Serbian Employers (UPS), Nebojsa Atanackovic, yesterday and assessed that the economy could not, without greater state assistance, additionally increase the minimum wage in the next year.

After yesterday’s meeting of the Social and Economic Council, where negotiations on the minimum wage for 2026 began, he said that one third of the economy could not withstand a new increase for 2026, after the increase from October 1, which would be valid until the end of the year.

The minimum wage is currently 53,592 dinars (457 EUR), and as of October 1, it should, as previously announced, be increased by 9.4%, to EUR 500 or 58,630 dinars. For 2026, President Aleksandar Vucic and the Ministry of Finance have announced an increase in the minimum wage to EUR 550 or 64,460 dinars.

According to Atanackovic, the majority of businesses are in favor of increasing the minimum wage, but with greater state assistance than that provided for, which is to raise the non-taxable portion of wages by 20% to 34,221 dinars.

– The real increase in the minimum wage should be equal to the growth of gross domestic product and inflation, which is about six percent, however, the minimum wage is planned to increase by 9.4% from October 1, and by 10.1% next year. Anything over six percent is possible with greater assistance than the current one that the state would provide – Atanackovic told the Beta agency.

He said that increasing the non-taxable portion of earnings for 2.9 million employees would mean that those companies that did not need it would also receive that “gift” because they could pay higher wages than the minimum and that it was therefore a gift for them, and for others who could not pay more than the minimum wage, the help was small.

Atanackovic said that the tax system should be changed and that those who could not pay higher wages than the minimum should be exempted from paying income tax.

By providing assistance to all companies, for those who cannot pay higher wages than the minimum, money is, as he assessed, being thrown away.

According to him, the Ministry of Finance previously said that they could not find experts to create a new tax system.

An additional aggravating circumstance, he assessed, is that representatives of the Ministry of Finance claim that until the budget is rebalanced at the end of the year, assistance for employers in the form of an increase in the non-taxable portion of wages cannot be provided.

He said that talks on increasing the minimum wage should perhaps have been delayed until it was determined what Serbia’s economic growth would be like, because almost all economies, except China and India, were declining, so in such conditions it was unnecessary to talk about wage growth, and perhaps circumstances would even require them to be reduced.

According to official statistics, the minimum wage in Serbia is paid to about 90,000 employees, but Atanackovic said that those who earned a few thousand more than that amount were not in a much better position, or that all wages below 60,000 dinars were minimum wages.

There are about 400,000 workers who receive such wages, as he stated, so most of the economy estimates that an increase is necessary, but with greater support from the state.

The unions will express their views on the proposed minimum wage at the next meeting, and the UGS Nezavisnost union previously announced that it would ask for EUR 600, or about 70,000 dinars.

Of the social partners - the Serbian Government, employers and unions - the only one whose position is not yet known is the Confederation of Autonomous Trade Unions of Serbia.

In the event that no agreement is reached, the minimum wage, according to the Labor Law, is determined by the state.

Unija poslodavaca Srbije Beograd

Ministarstvo finansija Republike Srbije

UGS Nezavisnost Beograd

Association of Serbia Employers

Ministry of Finance

UGS Nezavisnost

Nebojša Atanacković

minimum wage

minimum wage increase