Starting January 1, 2025, the minimum wage in Serbia will increase by 13.7%, reaching an average of 53,590 dinars, with the minimum hourly wage set at 308 dinars. In addition, employers will benefit from an increase in the non-taxable portion of salaries, aligned with the same 13.7% increase.
Ranka Savić from the Association of Free Independent Trade Unions commented on the wage hike, acknowledging that while the 13.7% increase appears substantial, the rising cost of living in Serbia diminishes its impact. “At first glance, the 13.7% increase seems like a significant improvement. However, when we consider the cost of living in Serbia, we can’t be satisfied with the minimum wage. We’ve seen a series of price hikes this year, including increases in utility services, real estate taxes, and parking fees,” Savić explained on Jutro na Blicu. She highlighted the disparity within some companies, where employees are still earning the minimum wage, which currently stands at around 47,000 dinars, despite the companies generating substantial profits.
Savić argued that employers must offer better working conditions, as the minimum wage is insufficient to support workers, especially in the face of rising living expenses.
On the other hand, Nebojša Atanacković from the Union of Employers emphasized that Serbia’s labor market has evolved and employers now face new challenges. “In the past, a regular job was enough for workers, but today the labor market has changed. Due to labor shortages, employers are forced to offer better wages and conditions because workers are no longer willing to accept low-paying jobs,” Atanacković noted.
He admitted that some employers are struggling to pay higher wages, but also affirmed that most members of the Union of Employers support the increase in the minimum wage, acknowledging that the labor market demands it.
