Serbia: Unions say govt offers €600 minimum wage, short of promised €650

Negotiations over Serbia's minimum wage have reached a critical juncture, with the government offering a 9.2 percent increase that would raise the minimum monthly wage from the current 550 euros to 600 euros starting January 1, 2027. This proposal, presented during talks on Wednesday, falls short of the previously promised target of 650 euros for the same year.

Zoran Ristic, a representative of the “Nezavisnost” (Independence) Trade Union Confederation, stated that finance ministry officials failed to provide a clear timeline for reaching the 650 euro goal. Employers have reportedly accepted the proposed 9.2 percent hike for 2027, contingent on a simultaneous increase in the tax-free income threshold, though the specifics of this adjustment remain undefined.

“

The representative trade unions - the ‘Nezavisnost’ Confederation and the Confederation of Autonomous Trade Unions of Serbia - reiterated the demand they made at the start of negotiations: they expect a clear answer on when exactly in 2027 the minimum wage will reach the promised 650 euro.

The representative trade unions, including the “Nezavisnost” Confederation and the Confederation of Autonomous Trade Unions of Serbia, have reiterated their initial demand: a concrete answer regarding the exact date in 2027 when the minimum wage will reach the promised 650 euros. Ristic noted that Wednesday's negotiations concluded without a consensus, but expressed hope for a compromise at the upcoming Social and Economic Council meeting scheduled for August 18.

For several years, the Serbian government, unions, and employers have grappled with reaching an agreement on minimum wage increases. Under Serbian labor law, the government holds the final authority in deciding the minimum wage amount and its effective date. Notably, Serbian President Aleksandar Vucic, who in previous years publicly announced the minimum wage figures before negotiations commenced, has remained silent on the matter this time. He had previously set a public goal for 2027, aiming for an average salary of 1,400 euros, with both the minimum wage and the average pension reaching 650 euros.

“

The negotiations concluded on Wednesday without the parties reaching a consensus, but noted that a compromise could still be reached at the meeting of the Social and Economic Council scheduled for August 18.