Serbia's Minimum Wage May Rise 9.2% to 600 Euros in 2027

Serbia's Ministry of Finance has put forward a proposal to increase the minimum wage by 9.2% for 2027. This would raise the monthly minimum from the current approximately 550 euros to around 600 euros. The proposed hike would also adjust the hourly rate from 371 dinars to 405 dinars.

“

The Ministry of Finance proposed an increase in the minimum wage for 2027 of 9.2 percent, from the current 550 euros to about 600 euros.

The proposal emerged during the first meeting between government representatives, employers, and trade unions to discuss the minimum wage. The Ministry of Finance also suggested offering incentives to employers, including an increase in the non-taxable income threshold.

The Employers' Union, however, views the potential economic capacity for a minimum wage increase differently. They suggest an 8% rise, factoring in inflation and GDP growth, and plan to present their final stance at the next meeting. Meanwhile, trade unions, specifically UGS "Nezavisnost" and the Confederation of Autonomous Trade Unions of Serbia, are pushing for discussions on overall wage increases, particularly in the public sector, to prevent wage compression.

“

The Employers' Union believes that the economy's capacity for the minimum wage to increase from January 1, 2027, is eight percent, along with inflation and GDP growth calculations.

Union representatives questioned the government regarding a previous promise that the minimum wage would reach 650 euros and the average salary 1,400 euros by January of the following year. The Ministry of Finance acknowledged the observed wage compression but stated that current discussions are limited to the minimum wage. Further negotiations are scheduled for August 12.

“

Where is the promise that the minimum wage from January next year will be 650 euros, and the average salary 1,400 euros?