Serbia’s government has proposed raising the minimum wage to 600 euros, falling short of union demands for 650 euros. The adjustment of 9.2 percent follows final negotiations between state officials, employers, and labor representatives, with a final vote expected at the Socio-Economic Council.
State officials and labor representatives have reached the final stage of bargaining over next year’s compensation floor, leaving unions dissatisfied with a proposal that stops short of earlier projections. First Deputy Prime Minister and Minister of Finance Siniša Mali announced that the government formally proposed raising the monthly baseline from its current level of 550 euros up to 600 euros.
Siniša Mali stated that they always accomplish what they promise and explained that within that framework, they had put forward today’s proposal to increase the minimum wage from 550 euros to 600 euros, which is a step toward the promised figure, and for it to reach 650 euros by the end of next year.
Union Objections and Employer Pressures
Labor organizations rejected the 9.2 percent bump during the concluding round of negotiations, pointing to public statements from state officials that had previously signaled a target of 650 euros. Miloš Miljković, executive secretary of the “Nezavisnost” trade union, questioned how officials planned to meet their earlier commitments if the baseline for the upcoming year was locked at the lower figure.
We did not manage to bring our positions closer at today’s meeting, and the state remained with the proposal of 9.2 percent. We believe that if state officials promised that it would be 650 euros at the end of the year — since we are now determining the minimum wage from January 1 to December 31 of next year, and if we do not determine that amount now, I do not know how they think that promise will be fulfilled. Miloš Miljković, executive secretary of the “Nezavisnost” trade union
Employers voiced a different set of grievances during the talks. Nebojša Atanacković, honorary president of the Union of Employers, noted that this meeting was the final round of negotiations and that an agreement had been reached, stating that all parties maintained the same stance as during the previous meeting. Atanacković also noted that businesses maintain that any mandatory increase is financially unsustainable, pointing out that a large number of business owners in their survey reported that any increase is unacceptable and that they are already struggling with the current level of increases.
To cushion the impact on businesses, state financial planners intend to lift the non-taxable portion of income by 9.2 percent, placing the heaviest fiscal burden of the adjustment onto the state, as announced by Siniša Mali. Ranka Savić, president of the Association of Free and Independent Trade Unions, noted that while the 600-euro figure was anticipated, it remains insufficient for basic living expenses in Serbia. Savić added that it is necessary to prevent the wage compression that is already occurring, and stated that a minimum salary of 100,000 dinars is necessary to keep up with all the costs of living in Serbia.
Labor Deficits and the Path Forward
Beyond the wage formula, negotiations followed an earlier round held on Monday, with representatives of the state, employers, and unions participating across the sessions. Nebojša Atanacković confirmed that the views of the working group will be presented to the Socio-Economic Council.
The Socio-Economic Council is scheduled to convene to formalize the decision, with Siniša Mali announcing the session of the Socio-Economic Council for Tuesday to make the final decision on the minimum wage for the following year. With the state holding firm on its 600-euro proposal, the upcoming session is expected to finalize the compensation framework that will govern employment contracts throughout the coming year.
