Negotiations about the minimum wage for 2027 start on 15 August, with trade unions stating they will not support a scenario where the minimum wage grows faster than other earnings, particularly in the public sector.
Although official talks on the minimum wage for 2027 begin on 15 August, it is already clear that this year’s focus will extend beyond the lowest earner’s rate. Unions have announced that alongside a minimum wage increase, they will push to resolve wage compression issues – especially in the public sector – warning that further minimum wage increases without raising other salaries undermine the pay structure and encourage staff departures.
Prime Minister Djuro Macut and Finance Minister Siniša Mali recently stated that a sustainable solution must be found to allow further wage growth while preserving economic competitiveness and macroeconomic stability. Union representatives agree with this approach, though they are refraining from presenting specific demands and proposals for now.
Dragan Todorović, Vice President of the Confederation of Autonomous Trade Unions of Serbia and a negotiation team member, stressed that alongside the minimum wage, public sector salaries will be a key issue on the agenda.
“Negotiations are a legal obligation and will begin in mid-August. We do not wish to put forward our specific proposals just yet, but we want to send a clear message that we can no longer talk solely about the minimum wage. It is essential to address other salaries as well, primarily in the public sector, where severe wage compression has occurred,” Todorović told Politika.
He added that trade unions will no longer support the practice of the minimum wage rising faster than other salaries.
“We cannot accept the minimum wage increasing at a higher rate than other pay grades. Increases must cover the entire system; otherwise, pay compression only worsens, creating new problems in the labour market,” Todorović said, arguing that differing percentage increases across sectors have further disrupted the principle of fair pay. “We talked about pay grades and the principle of equal pay for equal work, but different percentage increases led to the exact opposite effect. This creates dissatisfaction and causes workers to leave – both from the public and private sectors,” he noted.
As a reminder, last year’s negotiations concluded with an agreement to increase the minimum wage by 10.1% starting from 1 January 2026, following an extraordinary increase of 9.4% that took effect on 1 October 2025. This brought the minimum hourly rate to 371 dinars. According to Ministry of Finance data, the cumulative increase in the minimum wage between 2025 and 2026 reached 37%, or 27.1% in real terms. At the same time, the government raised the tax-free allowance to maintain the same tax burden on minimum wage earnings and ease costs for employers.
(Kamatica, 27.07.2026)