Finance minister: Government proposes €600 monthly minimum wage

Serbia's government is proposing to raise the national minimum wage to 600 euros per month for 2027, according to Finance Minister Siniša Mali. The announcement came during ongoing negotiations with unions and employer representatives.

Mali stated that the proposed 9.2 percent increase in the minimum cost of labor would ensure the minimum wage covers 116 percent of the "minimum consumer basket." To support employers, the government plans to raise the tax-free income threshold by the same percentage, effectively subsidizing a portion of the wage increase.

However, business owners are expressing concerns. Nebojša Atanacković, Honorary President of the Serbian Association of Employers, reported that a growing number of business owners are warning they cannot afford additional minimum wage increases. He noted that more employers are experiencing financial strain compared to previous years.

Data from the Centre for the Politics of Emancipation (CPE) indicates that a "living wage", covering basic social and existential needs for a worker and their family, was approximately 1,320 euros per month in 2026, based on 2025 inflation trends. Both Serbia's Labor Law and the International Labor Organization (ILO) define this standard.

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This would bring the minimum wage to a level where it covers 116 percent of the ‘minimum consumer basket’. Crucially for employers, we also plan to raise the tax-free income threshold by the same percentage, meaning the state will effectively absorb a portion of the cost of this increase.