Serbia proposes 600-euro minimum wage for 2027

Serbia's government has proposed a 9.2% increase in the minimum wage for 2027, aiming to set the minimum monthly income at 600 euros. Finance Minister Siniša Mali announced the proposal, stating it would ensure the minimum wage covers 116% of essential living costs.

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Thus, the coverage of the minimum consumer basket by the minimum wage would amount to 116 percent.

In addition to raising the minimum wage, the government plans to increase the non-taxable portion of earnings. Mali indicated this measure would help offset the cost increase for employers, with the state absorbing part of the financial burden.

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What is very important for employers is that we will raise the non-taxable part of the salary by the same percentage, so the state will take on part of the cost of this increase.

The Center for Emancipatory Politics calculated that a "living wage" for 2026, sufficient to cover basic social and existential needs, amounts to 154,740 dinars. This calculation aligns with Serbian labor law and International Labour Organization standards.

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This is a salary sufficient to cover the basic social and existential needs of the worker and their families, just as the minimum wage is defined by our Labor Law and the standards of the International Labor Organization.

However, some employers express concern. Nebojša Atanacković, honorary president of the Employers' Union of Serbia, noted that a larger number of employers surveyed this year feel unable to absorb the proposed minimum wage increase compared to the previous year.

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Compared to last year, a larger number of employers surveyed about the increase in the minimum wage are stating that they cannot bear it.