Negotiations in the Social-Economic Council (SES) began on August 18 to set the minimum wage for 2026, amid differences between union demands and government proposals.
The current minimum wage is 53,592 dinars and will increase by 9.4% to 58,630 dinars on October 1. The government proposes an additional 10.1% rise from January 2026, bringing the minimum wage to around 550 euros, a cumulative increase of 20.45%.
The UGS Nezavisnost union demands a minimum wage of about 600 euros (70,000 dinars), based on the consumer basket analysis. Unions plan to present their detailed demands at the next meeting on August 26.
The Ministry of Finance also proposed raising the non-taxable portion of income by 20%, to 34,221 dinars. Employers oppose a January increase, while unions continue negotiations and suggest discussions on raising all salaries, particularly in the public sector. The gap between union demands and the government proposal is approximately 50 euros. The honorary president of the Serbian Employers’ Union stated that the October increase alone is sufficient for 2026 without additional state support.
