At the meeting of the Social-Economic Council of the Republic of Serbia, a decision was made on an extraordinary increase in the minimum wage in Serbia, which enters into force on 1 October 2025.
The new minimum wage will be RSD 58,630 (about EUR 500), or RSD 337 per hour, marking a 9.4% increase from the current rate.
Given that the amount of the minimum wage is usually adjusted once a year, based on negotiations in September, this increase represents an exception in order to increase the standard of living of the citizens. The previous regular increase of 13.7% took effect on 1 January 2025, while another regular increase of 10.1% is planned for 1 January, 2026, which would bring the minimum wage to EUR 550. This means that over the course of just one year, the total increase would amount to as much as 37%.
In addition to raising wages, the government also increased the non-taxable portion of income from RSD 28,423 to RSD 34,221. This move lowers the overall tax burden on salaries, providing direct support to employers and encouraging job creation.
Officials say further discussions about future wage increases will continue in August and September as part of regular consultations within the Socio-Economic Council. The long-term goal is to raise the minimum wage to EUR 650 and the average salary to around EUR 1,400 by the end of 2027, in line with Serbia’s strategic “Serbia 2027” plan.
The decision was reached by consensus among the government, labor unions, and employers, which the Ministry of Finance assessed as an important signal of stable social dialogue and responsible economic planning.
By Jelena Nikolic, Partner, and Marko Ilic, Senior Associate, JPM Partners Serbia
