State representatives have proposed a 9.2% increase in the minimum wage, which would bring the minimum hourly wage to 405 dinars from 1 January 2027.
The minimum hourly wage in 2027 could rise from the current 371 dinars to 405 dinars if trade unions and employers agree to the Serbian government’s proposal. In that case, from 1 January 2027, Serbia’s minimum wage would amount to 70,400 dinars, an increase of 9.2%, Kurir reports following yesterday’s meeting of the negotiating team on the minimum wage.
However, neither the trade unions nor employers were satisfied with the proposal. The unions said the increase was below expectations, while the Serbian Employers’ Union said the proposed increase was too high.
Union: No improvement
As Dragan Todorović of the Confederation of Autonomous Trade Unions of Serbia explained to Biznis Kurir, the proposed 9.2% increase in the minimum wage would not bring any significant improvement to workers in Serbia. “We asked for a double-digit increase in the minimum wage, closer to last year’s increase, which is why we did not want to put forward a specific figure. The aim of our negotiations is to see what the government’s options are. The proposed 9.2% increase in the minimum wage and an increase of around 9% in the average wage in Serbia next year mean that the previous promise that the average wage would reach €1,400 in 2027 and the minimum wage €650 has been abandoned. The state is not giving up on the goal of bringing the minimum wage to €650, but this certainly will not happen next year, perhaps in 2028. We, as a trade union, did not accept the proposal. We still need to consult internally, and at the new working group meeting on Wednesday we will present our position,” Todorović said.
Todorović also said that state representatives had not provided him with information on how much wages in the public sector could increase next year. “As for the projected increase in public-sector wages, we did not receive any answer because this is also an unknown for them. But if the average wage in 2027 increases by 9%, while salaries are currently just over €1,000, this means that the average wage in Serbia next year will be below €1,100,” he added.
Employers: Increase is too high
The Serbian Employers’ Union was also dissatisfied on the first day of negotiations on next year’s minimum wage, saying that the proposed increase was too high. “We believe that a 9.2% increase in the minimum hourly wage is extremely high and that, without additional government measures, the economy, particularly the micro, small and medium-sized enterprise sector, will not be able to absorb it, especially given that there has been an extraordinary increase in the minimum wage followed by a regular increase in the recent period. In this regard, we presented our expectations regarding an increase in the tax-free portion of wages, given that the Ministry of Finance has taken a firm position only on the issue of reducing taxes and social contributions,” said Ljiljana Pavlović of the Serbian Employers’ Union.
According to Pavlović, the proposed increase is higher than all the parameters taken into account when determining the minimum hourly wage. “A 9.2% increase is far above the expected inflation rate and GDP growth in 2027. In this regard, we believe that government intervention is necessary. We are not talking about employers operating successfully in Belgrade with high turnover, but about employers in smaller, local communities and small family businesses that are on the brink of survival, for whom raising the minimum wage to €600 would not be sustainable without government support,” Pavlović said.
The next round of negotiations on the minimum hourly wage is scheduled for Wednesday, 12 August 2026.
(Kurir, 11.08.2026)
https://biznis.kurir.rs/novcanik/10072846/koliko-se-povecava-minimalac-u-srbija-prosecna-plata