In negotiations over Serbia’s minimum wage for 2026, the government has proposed a 10.1% increase, but both unions and employers have criticized the proposal. Unions consider it insufficient due to expected inflation, while employers view it as unsustainable.
Zoran Mihajlović, president of the Confederation of Autonomous Trade Unions of Serbia (SSSS), noted that inflation could offset the increase, stressing that the consumer basket for a family of four already exceeds 100,000 dinars. He emphasized the need for wage growth across the board to prevent wage compression and the loss of skilled workers.
Employers’ representative Ljiljana Pavlović said the proposed increase is not sustainable given inflation, GDP growth, and economic conditions. She noted that the government plans interventions to support the economy, but stressed that any wage increase must not risk employment.
The SSSS has proposed a minimum wage of 70,000 dinars for 2026, which is expected to serve as a starting point in negotiations with the government and employers. Parallel negotiations are planned on public sector wages to ensure fair and sustainable working conditions.
Union representatives also highlighted the need to address wage compression in sectors affected by minimum wage increases. Additionally, SSSS is conducting a comprehensive survey of household incomes and spending to support evidence-based proposals, with results to be presented at a roundtable on August 25.
The next negotiation meeting for determining the 2026 minimum wage is scheduled for August 26.
