In 2025, several important new laws will come into effect in Serbia, impacting salaries, pensions, interest rates and taxation. Notable changes include an 8% salary increase in the public sector, a 17.3% hike in the minimum wage, adjustments to the non-taxable portion of salaries, new retirement conditions for women and limits on interest rates for loans.
Salary and minimum wage increases
Starting in the new year, the minimum labor price will rise by 17.3%, from 271 dinars to 308 dinars per working hour (excluding taxes and contributions). The exact amount of the minimum wage will vary depending on the number of working days or hours in a month, amounting to approximately 53,592 dinars (or around 457 euros). Additionally, public sector employees will see an 8% increase in their salaries, with educators receiving an 11% raise starting tomorrow.
Changes to social insurance and pension systems
Under new amendments to the law on mandatory social insurance contributions, the non-taxable part of the salary will increase from 25,000 dinars to 28,423 dinars, helping to reduce the tax burden on salaries and encourage new employment. The minimum base for mandatory social insurance contributions will be set at 45,950 dinars, while the maximum will be 656,425 dinars.
Pensions were already increased at the end of 2024. From December 2024, pensions and other benefits under pension and disability insurance will be increased by 10.9%. This will be reflected in pension payments starting in January 2025, with the average pension amount for December 2024 estimated at 50,700 dinars.
New conditions for retirement will take effect from January 1, 2025. Women will be able to retire at 63 years and 10 months, provided they have at least 15 years of insurance experience. The conditions for men remain unchanged, allowing them to retire at the age of 65 with at least 15 years of service. However, the retirement age for women will gradually align with the male standard, reaching 65 years by 2032.
Changes to interest rates on loans
In 2025, the Serbian government will impose limits on interest rates for housing, cash, and consumer loans. A new decision by the National Bank of Serbia (NBS) will cap interest rates on existing and new loans with variable interest rates at 5%. For new loans with fixed interest rates, the cap will also be set at 5%. Additionally, the nominal interest rate on loans in dinars will be limited to 14.75%, with an effective interest rate (including all costs) not exceeding 15.75%.
For credit cards and overdrafts, the effective interest rate will be capped at 17.75% and 19.75%, respectively. The NBS clarified that these measures are temporary and will remain in effect until the adoption of the relevant legal proposal, expected by the end of 2025.
New customs and excise laws
From January 1, 2025, the Regulation on Harmonization of the Customs Tariff will be applied, aligning Serbia’s tariff nomenclature with the European Union’s combined nomenclature for the upcoming year. This regulation outlines the customs duties, tariffs and free trade agreement rates applicable to imported goods.
Amendments to the Excise Law will also come into effect, notably increasing the fuel surcharge for transporters. The surcharge for diesel fuel will rise from 15.19 dinars to 34.56 dinars per liter, a 19.37 dinar increase. This measure is expected to improve the economic position of those involved in cargo and passenger transport, particularly domestic road transport. The new excise duty refund amount will be applied starting July 1, 2025.
Tax reforms and property tax adjustments
From January 1, 2025, amendments to the Rulebook on tax declaration forms will change the process for determining property tax, including how to submit declarations, process data, and calculate the tax base. These changes aim to enhance precision, transparency, and alignment with current regulations.
One key update relates to real estate valuations. If local governments do not publish average real estate prices within the prescribed period, the new rulebook specifies that alternative criteria will be used to determine the property value. The method for calculating the tax base will be more precise, including scenarios where the average price per square meter is unavailable.
Additionally, the new rules will apply in cases where the usable area of a property changes during the year. Tax declarations will now require the date of the change to be recorded, ensuring that the property tax is accurately calculated based on the updated area.
