Simović: A Gap Exists Between Living Wage and Minimum Wage Amid Record Economic Profitability

A new calculation of the living wage for 2026 in Serbia reveals a significant disparity between what workers need to survive and the current minimum wage. The Center for Emancipatory Politics determined that a living wage should be 154,740 dinars per month. This amount is intended to cover essential social and existential needs for workers and their families, aligning with definitions of a living wage in Serbian labor law and International Labour Organization standards.

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The money for food, housing, clothing, some cultural needs, education, healthcare, and even to leave a small amount of money for unforeseen expenses.

Vladimir Simović from the Center for Political Emancipation emphasized that this living wage should provide enough for food, housing, clothing, cultural activities, education, healthcare, and even a small amount for unforeseen expenses. He stressed that individuals who work should not live in poverty and should be able to subsist on their earnings.

In contrast, the current average minimum wage in Serbia hovers around 65,000 dinars per month, calculated based on working hours. Simović highlighted the "gap" between this minimum wage and the calculated living wage of 154,740 dinars. This disparity exists even as the Serbian economy is experiencing record profitability. Last year, the economy recorded a net profit of 8.2 billion euros, an 11% increase, indicating a continuous trend of rising profitability.

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People who work should not be poor and should be able to survive on their wages.

Simović questioned why this profit growth is not reflected in the minimum wage. He suggested that while some small businesses or low-profit sectors might struggle to afford significant wage increases, this cannot apply to the entire economy, given the substantial profits being made in other areas. He advocated for progressive policies that could alleviate tax burdens for small businesses while ensuring that those earning substantial profits contribute back to society by guaranteeing decent wages.

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On the other hand, what workers must earn to meet their needs and those of their families is 154,740 dinars, so it's not a difference, it's a gap that exists in our society and our economy, and this is at a time when our economy is recording record profitability.

Currently, 641,000 workers in Serbia with employment contracts earn less than 75,000 dinars per month. This means approximately a quarter of employed individuals receive wages below this threshold, underscoring the widespread impact of the wage-living cost gap.

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We heard representatives of employers these days saying there is no money, it seems to me that there is money, but the question is how we distribute it.