Serbian Association of Employers: Increase of Minimum Wage Not to Be Felt by Employers

The Serbian Association of Employers announces that the announced increase of the minimum wage will be absorbed through the reduction of expenditures for the Pension and Disability Insurance Fund and the increase on the non-taxable part of the income.

The Ministry of Finance of the Republic of Serbia proposed for the minimum wage in 2023 to be increased 14.3%, that is, from RSD 201.22 to RSD 230.000 per hour. That means that the minimum monthly wage for an average 174 work hours will be increased from RSD 35,012.28 to RSD 40,020.

At the same time, this increase will be accompanied with lower charges for the economy through the increase of the non-taxable salary components from RSD 19,300 to RSD 21,712 and the reduction of contributions for pension and disability insurance at the expense of the employer by 1%, the Serbian Association of Employers announced.

The decision on the minimum wage will be adopted by the Government of the Republic of Serbia by September 15, because the social partners did not reach an agreement at yesterday’s session of the Social-Economic Council.

– This proposition is a step forward in boosting the living standard of the most vulnerable categories of employees, but also aid in maintaining the business operation of a large part of companies, that is, the economy as a whole – stated Milos Nenezic, the president of the Serbian Association of Employers: – We understand the request of the unions for the minimum wage to already now match the minimum consumer basket, but we also know that, in the past years, the Serbian economy has faced several situations which have had a negative impact, beginning with the Covid pandemic, through the conflict in Ukraine, the lack of raw materials, the loss of markets and the energy crisis, which, unfortunately, is obviously not going to end yet. Thanks to the understanding of the state, which has waived a part of its income, with all the other measures of aid that it provides to us employers with a great understanding, we are going through these turbulent times much more easily. We hope to still have a lot of understanding from the Government of Serbia and President Aleksandar Vucic in maintaining and improving the business environment.

Unija poslodavaca Srbije

Ministarstvo finansija Republike Srbije

Serbian Association of Employers

Ministry of Finance of the Republic of Serbia

Milos Nenezic

increase of minimum wage

minimum consumer basket

increase of non taxable salary components

Serbian economy

energy crisis

minimum wage

living standard

employees

minimum wage

Pension and Disability Insurance Fund contribution

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