Minimum Wage in Serbia – changes from October 2025 and employers’ obligations –
Newsletter 150
At the session of the Social and Economic Council of the Republic of Serbia held on 15 July 2025, a decision was made to introduce an extraordinary increase of minimum wage.
Therefore, starting from 1 October2025, minimum net wage per a working hour will amount to RSD 337 (i.e., without taxes and contributions). This change represents an increase of RSD 29 per hour, i.e., 9.4% compared to the previous minimum wage of RSD 308 per hour.
This extraordinary increase provides an opportunity to explain in more details minimum wage institute and its role in employment relationships.
What is meant by minimum wage, and how is it determined?
Minimum wage represents the lowest amount that an employee may be paid per working hour. According to the Labour Law, each employee is entitled to minimum wage for standard performance and time spent at work. Minimum wage is determined based on:
- minimum labour cost (i.e., the amount of minimum wage per hour) determined in accordance with the Labour Law;
- time spent at work; and
- taxes and contributions.
An employee who receives minimum wage is entitled to increased salary in accordance with the Labour Law, as well as reimbursement of expenses and other entitlements that are considered salary under the law. Minimum wage is basis for calculation of increased salary.
Who determines minimum wage?
The Social-Economic Council of the Republic of Serbia is responsible for setting the net minimum hourly wage for the calendar year, no later than 15 September of the current year.
If the Social-Economic Council fails to reach an agreement within 15 days from the start of the negotiations, the Serbian Government adopts a decision on minimum wage amount within the following 15 days.
How and for which period is minimum wage determined?
When determining minimum labour cost, the following is considered:
- existential and social needs of employees and their families, as reflected through minimum consumer price index
- employment rate trends
