Mali Announces Minimum Wage Increase in Serbia to €550 by January 2026
Serbian Minister of Finance reveals planned wage hikes to address cost of living and economic growth amid rising inflation concerns.
In a recent address, Serbian Minister of Finance, Siniša Mali, announced a significant increase in the country’s minimum wage, which is set to rise to €550 by January 1, 2026. The minister stated that the government will implement an extraordinary increase of 9.4% from €457 to €500 starting October 1, 2025, followed by a subsequent increase of 10.1% to reach €550 three months later.
Mali noted that this measure responds to the current economic climate and aims to alleviate the financial pressure on low-income workers.
He highlighted that the average inflation rate in Serbia is currently between 3.5% and 4%, emphasizing the importance of adjusting wages to meet the rising cost of living.
Presently, the number of individuals receiving the minimum wage has drastically decreased to approximately 91,000, a reduction attributed to various economic factors over the past decade.
The Minister remarked that twelve years ago, the minimum wage was approximately 15,700 dinars, marking a substantial shift in the country’s wage landscape.
Mali’s announcement comes as part of a broader strategy to increase average salaries in Serbia, with projections indicating an average wage of €1,400 by 2027. The Minister proposed further increases, suggesting a rise to €600 in January 2027 and €650 in January 2028.
Highlighting the impact of foreign direct investment, Mali stated that Serbia has historically been a leader in attracting such investments, although recent economic challenges have led to a downturn in investor interest.
The government's current projections have adjusted expected economic growth to around 3.5% for the next period, partly due to domestic protests and blockades that have affected stability.
Additionally, Mali announced that 110 countries have confirmed participation in the upcoming specialized exhibition EXPO, reflecting ongoing infrastructure developments across Serbia, including schools, roads, and other public facilities.
This initiative is seen as part of a broader effort to enhance the country’s international image and promote economic growth.
In discussions around pensions, President Aleksandar Vučić indicated that there will be a significant increase in pensions, with expectations of a rise between 7% and 9%.
He emphasized that the growth of the minimum wage is particularly aimed at supporting workers in low-income sectors such as construction and cleaning.
Currently, 6,000 employees are in the public sector earning minimum wages, alongside 89,000 in the private sector.
President Vučić also touched on the improvements in average salaries, citing that they are higher than in many countries with greater minimum wage levels.
The average salary in Niš, for instance, is reported to be nearly €900, while in an affluent district such as Vračar, it reaches approximately €1,635.
The government aims for a cascading effect on salaries, with expectations that the rise in minimum wage will prompt increases across various sectors, contributing to overall economic growth and improved living standards for citizens.
Mali noted that this measure responds to the current economic climate and aims to alleviate the financial pressure on low-income workers.
He highlighted that the average inflation rate in Serbia is currently between 3.5% and 4%, emphasizing the importance of adjusting wages to meet the rising cost of living.
Presently, the number of individuals receiving the minimum wage has drastically decreased to approximately 91,000, a reduction attributed to various economic factors over the past decade.
The Minister remarked that twelve years ago, the minimum wage was approximately 15,700 dinars, marking a substantial shift in the country’s wage landscape.
Mali’s announcement comes as part of a broader strategy to increase average salaries in Serbia, with projections indicating an average wage of €1,400 by 2027. The Minister proposed further increases, suggesting a rise to €600 in January 2027 and €650 in January 2028.
Highlighting the impact of foreign direct investment, Mali stated that Serbia has historically been a leader in attracting such investments, although recent economic challenges have led to a downturn in investor interest.
The government's current projections have adjusted expected economic growth to around 3.5% for the next period, partly due to domestic protests and blockades that have affected stability.
Additionally, Mali announced that 110 countries have confirmed participation in the upcoming specialized exhibition EXPO, reflecting ongoing infrastructure developments across Serbia, including schools, roads, and other public facilities.
This initiative is seen as part of a broader effort to enhance the country’s international image and promote economic growth.
In discussions around pensions, President Aleksandar Vučić indicated that there will be a significant increase in pensions, with expectations of a rise between 7% and 9%.
He emphasized that the growth of the minimum wage is particularly aimed at supporting workers in low-income sectors such as construction and cleaning.
Currently, 6,000 employees are in the public sector earning minimum wages, alongside 89,000 in the private sector.
President Vučić also touched on the improvements in average salaries, citing that they are higher than in many countries with greater minimum wage levels.
The average salary in Niš, for instance, is reported to be nearly €900, while in an affluent district such as Vračar, it reaches approximately €1,635.
The government aims for a cascading effect on salaries, with expectations that the rise in minimum wage will prompt increases across various sectors, contributing to overall economic growth and improved living standards for citizens.
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