Serbian unions, employers clash over minimum wage hike

Negotiations over Serbia's minimum wage have hit a deadlock, with employers and unions unable to agree on a proposed increase. The Union of Employers of Serbia reports that a survey of its members revealed a significant divide, with 46% of businesses stating they cannot afford any raise to the current minimum wage.

Nebojša Atanacković, honorary president of the Union of Employers, explained that this year's survey showed an even greater division among businesses compared to last year. He noted that a substantial number of entrepreneurs are struggling to pay current wages, which are considered insufficient for family expenses, particularly in Belgrade. "There is a significant number of entrepreneurs who are barely managing to pay these wages, which are extremely low and inadequate for family needs in Belgrade," Atanacković said.

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There is a significant number of entrepreneurs who are barely managing to pay these wages, which are extremely low and inadequate for family needs in Belgrade.

Conversely, unions argue that the proposed 9.2% increase is not enough. Miloš Miljković, executive secretary of the Nezavisnost union, stated that their analysis, based on legal parameters for determining the minimum wage, indicates a double-digit increase is necessary. "According to our analyses, analyzing all the parameters that are used when determining the minimum wage, in accordance with the Labor Law, the indicator is that the minimum wage increase had to be double-digit. We did not bargain with absolute amounts during the negotiations, nor yesterday at the session of the Social-Economic Council. 9.2 percent is not a small increase, we said that yesterday, but it is insufficient," Miljković stated.

Miljković emphasized that the minimum wage is not just an economic issue but also a social one, crucial for maintaining a certain level of dignity and purchasing power for low-income individuals. He also pointed to the "Serbia 2027" program, which promised a minimum wage of 650 euros by the end of 2027. Unions are seeking written guarantees on when this target will be reached, questioning how it can be achieved without setting clear milestones for the upcoming year.

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According to our analyses, analyzing all the parameters that are used when determining the minimum wage, in accordance with the Labor Law, the indicator is that the minimum wage increase had to be double-digit. We did not bargain with absolute amounts during the negotiations, nor yesterday at the session of the Social-Economic Council. 9.2 percent is not a small increase, we said that yesterday, but it is insufficient.