Siniša Mali, Serbia's Finance Minister, has announced a significant adjustment to the country's minimum wage structure, stating that a special increase will be implemented starting October 1, 2023, followed by a regular raise effective January 1, 2024.

In a recent press conference, Mali detailed that the minimum wage would see a 13.7% increase, a move that aligns the minimum wage with the cost of living reflected in the national consumption basket.

As of January 2023, the minimum wage stands at 457 euros per month.

Looking ahead, Mali indicated that the plan is to further raise the minimum wage by 9.4% to 500 euros in January 2024. Subsequently, in January 2026, a further increase of 10.1% is proposed, bringing the minimum wage to 550 euros, marking a historic first for Serbia.

Mali also emphasized that the current inflation rate fluctuates between 3.5% and 4%, noting that the number of individuals receiving the minimum wage has reached its lowest point in history, with approximately 91,000 people relying on this income level.

The minister highlighted a stark contrast in the wage landscape, citing that just 12 years ago, the minimum wage in Serbia was 15,700 dinars.

By 2027, Mali anticipates that the average wage in the country will reach approximately 1,400 euros.

He suggested that further incremental increases could see the minimum wage rise to 600 euros by January 2027 and to 650 euros by January 2028.

In addition to wage adjustments, Mali discussed the broader economic context, noting that Serbia has traditionally been a leader in attracting foreign direct investment.

However, he pointed out that recent disruptions, including protests and economic blockades, have adversely affected growth projections, which have now been revised down to 3.5%.

This series of announcements reflects the ongoing efforts by the Serbian government to address wage levels amidst changing economic conditions and to adapt to the challenges posed by inflation.