Serbia proposes 9.2% minimum wage increase for 2027

The Serbian government has proposed increasing the minimum hourly wage from 371 to 405 dinars starting January 1, 2027. This 9.2 percent increase would result in a monthly minimum salary of approximately 70,400 to 70,470 dinars.

Negotiations involving the Social-Economic Council have met resistance from both labor unions and employers. Unions argue the increase is insufficient and fails to meet previous government promises of a 650 euro minimum wage and a 1,400 euro average salary by 2027. They are demanding a double-digit increase and more transparency regarding wage compression in the public sector.

Conversely, the Serbian Employers Union warns that the proposed hike is too high for many businesses, particularly micro, small, and medium enterprises, to sustain without state support. They suggest an 8 percent increase might be more manageable.

Additionally, the Center for Emancipation Policies (CPE) reported that a living wage for 2026 in Serbia is estimated at 154,740 dinars. They noted that the current minimum wage covers only about 42 percent of what is required for a dignified life, leaving many workers below the poverty threshold.