Serbia Offers 600 Euro Minimum Wage for 2027, Falling Short of Promises

Negotiations over Serbia's minimum wage for 2027 have hit a snag, with government representatives offering an increase to 600 euros, a figure significantly lower than the previously pledged 650 euros. This proposal was presented during a meeting with trade unions and employer representatives.

The government's offer represents a 9.2% increase from the current minimum wage of approximately 550 euros. Zoran Ristić, a representative from the UGS "Nezavisnost" union, stated that the Ministry of Finance has not provided a timeline for when the minimum wage will reach the promised 650 euros. Employers, meanwhile, have agreed to the proposed percentage increase, contingent on a rise in the non-taxable income amount, though specifics remain unclear.

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The representatives of the Ministry of Finance have not, even today, in the continuation of the negotiations, answered when the minimum wage will reach the previously promised 650 euros.

Both the UGS "Nezavisnost" and the Federation of Trade Unions of Serbia have reiterated their demand for a clear answer regarding the 650 euro target. They argue that employers need this certainty to effectively plan their business operations. Ristić indicated that negotiations have concluded for now, with no convergence of views, but a potential agreement could be reached at the upcoming session of the Social-Economic Council on August 18.

Disagreements over minimum wage increases have been a recurring issue between social partners for several years. Historically, Serbian President Aleksandar Vučić announced the minimum wage figures before negotiations began. He had previously set a goal for the average salary to reach 1,400 euros by 2027, with both the minimum wage and average pension reaching 650 euros. However, this year, the president has not publicly stated the minimum wage figures in advance.

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The representative trade unions UGS 'Nezavisnost' and the Federation of Trade Unions of Serbia have also reiterated their demand from the beginning of the negotiations that they expect a clear answer as to when the minimum wage during 2027 will reach the previously promised amount of 650 euros.