Negotiations to determine the minimum wage for the coming year are scheduled to officially begin on 10 August, somewhat earlier than in previous years.
Representatives of the Confederation of Autonomous Trade Unions of Serbia (SSSS) told Euronews Serbia that they do not yet have a platform for the negotiations and will present a concrete proposal by the end of the week. Meanwhile, the Serbian Association of Employers (UPS) stated that an employer survey is currently underway, the results of which will form the basis for talks at the Social and Economic Council level.
The SSSS expects a more significant increase, whereas the Employers’ Association highlights that their position on the issue has remained unchanged for years – namely, that the minimum wage, like all other wages, can only be raised on the basis of realistic statistical assumptions.
The Honorary President of the Serbian Association of Employers, Nebojša Atanacković, stated that social partners will present their positions at the first meeting, which will then be considered ahead of the next session.
“At the following meeting, it will become clear whether a consensus exists or not,” Atanacković said.
Atanacković noted that it is not entirely clear to him why the Government is rushing the minimum wage negotiations, suggesting that the announced elections might be the reason.
The President of the SSSS, Zoran Mihajlović, also assumed that the elections are the reason negotiations are starting earlier than usual.
“We in the union do not yet have a platform. On Wednesday, we will hold a working meeting where, based on the parameters used to determine the minimum wage, we will assess what we believe the increase for next year should be. By the end of the week, we will come forward with a more specific proposal,” he said.
How much will the increase be?
Atanacković reiterated that the employers’ position on the size of the minimum wage increase has been consistent for years, stating that the minimum wage – and all other wages – can only be raised based on realistic statistical assumptions: projected GDP growth and projected inflation.
“In practice, those two figures combined give the percentage of the increase,” he added.
Atanacković mentioned that trade unions always request a larger increase, while employers operate at the limit of sustainability and their ability to continue business operations, hoping the state might offer some relief by raising the tax-free portion of earnings.
He noted that employers have been requesting for years that tax exemptions be granted to those struggling businesses that pay minimum wage or salaries close to it.
“Taxation should target those with significantly higher earnings,” Atanacković stated.
If there is a substantial increase in the minimum wage, Atanacković warned that it would make operations impossible for a significant number of employers.
“In previous surveys, around 35 per cent of respondents stated they could not afford to pay higher minimum wages, because an increase in the minimum wage drives up other wages as well,” Atanacković said.
Public sector wages back in the spotlight
Mihajlović noted that last year the minimum wage was raised significantly more than other salaries, particularly those in the public sector, leading to wage compression.
“This time, we must ensure that the percentage increase of other salaries matches the percentage increase of the minimum wage, so we avoid further wage compression and discontent among public sector workers,” he said.
He stated that the SSSS will demand that public sector wages be increased by at least as much as the minimum wage.
Atanacković mentioned that unions have raised the issue of wage compression at the Social and Economic Council several times.
“When minimum wages are increased, they become very close to higher-tier salaries, because there is no money to raise those higher salaries proportionally,” he said.
Atanacković argued it is absurd for unions to now demand that, alongside the minimum wage increase, other public sector salaries be raised by an even higher percentage.
He believes this would trigger severe inflation.
A decision on the minimum wage must be made by 15 September. In the absence of an agreement within the Social and Economic Council, the Government will set the minimum wage rate itself.
(Euronews, 06.08.2026)
https://www.euronews.rs/biznis/biznis-vesti/236073/pregovori-o-minimalcu-pocinju-10-avgusta/vest