The Employers’ Union of Serbia has yet to present a specific proposal for increasing the minimum wage. The organization highlights that the critical factors for Serbian businesses are the growth of the gross domestic product (GDP) and inflation, as reported by Nova ekonomija.
Ljiljana Pavlović, a member of the negotiating team from the Employers’ Union of Serbia (UPS), explained to Nova ekonomija that during the initial negotiations on the minimum wage, they reviewed the parameters used to determine it. “We have received the latest data from the Ministry of Finance regarding GDP growth, the consumer basket, inflation, and other relevant parameters,” she said. However, they have not received a specific range for the minimum wage increase from government representatives.
Pavlović also mentioned that the Union typically conducts a survey among employers before negotiations begin. “According to the data we have, about 35 percent of employers oppose an increase in the minimum wage, fearing it will negatively affect their business. In such cases, they might reduce their workforce and raise the prices of services and products,” she noted.
She added that employers are still hoping for government intervention if there is a significant increase in the minimum wage, such as increasing the non-taxable portion or reducing taxes and contributions.
Regarding the unions’ proposal to raise the minimum wage to over 60,000 dinars, Pavlović indicated that this proposal seems unrealistic at present and does not believe the minimum wage can be increased by 31.32 percent.
“We highly respect the unions, and they are certainly working to improve living standards for employees. However, the minimum wage, which serves as the basis for many state allowances, poses a significant challenge for the government in planning its budget for the coming year,” Pavlović concluded.
The first meeting of the negotiating groups did not result in an agreement on the new minimum wage. The next meeting, as announced by Zoran Mihajlović, Secretary of the Union of Autonomous Trade Unions of Serbia (SSSS), is scheduled for Monday, August 19.
Representatives from the Serbian government, major trade unions, including the Union of Autonomous Trade Unions of Serbia and UGS “Nezavisnost,” and employers, represented by the Employers’ Union of Serbia, have shared their perspectives on the current situation and the proposed minimum wage adjustments.
