Vlada republike SrbijeGovernment of the Republic of Serbia

Jezici

Serbia Trailing in Europe regarding Minimum Wage Amount

Published 15.09.2015.

Novčanik - ilustracijaRegarding minimum wage, Serbia is among the group of countries with low minimum wages, and the amount is below that of the majority of EU countries and some countries in the region, such as Montenegro. Although increased by around 1,000 dinars this year to 20,328 dinars net in August, minimum wage has, expressed in euros according to Eurostat calculations, remained unchanged compared to 2013, i.e. it decreased by four euros. Covering basic consumer needs, envisaging only basic costs and essentially leaving no room for items such as education, requires just over one and a half minimum wages, while average consumer needs require three minimum wages. The Government of Serbia decided on 14 September, after the failure of social partners to agree on this, that the minimum wage in 2016 will remain unchanged.

According to union estimates from 2014, minimum wage in Serbia is earned by around 400,000 people, with every other person receiving even less from their employers. On the other hand, a large number of people officially only receive minimum wage, while receiving the rest in unreported cash.

With unemployment near 20%, depending on the quarter, and an activity rate officially increasing and slightly above 50%, salaries make up 48% of the income of an average Serbian household, while pensions reach nearly a third (29.2%), with a similar situation in 2014 as well, data from the Statistical Office of Serbia show.

The average salary in July was 45,601 dinars net, and is slightly more than twice the minimum wage. Salaries are realistically nearly unchanged (i.e. lower by 0.1%) that in July 2014. Salaries in the public sector in Serbia are higher than in the private, but after the salary cuts in the public sector in late 2014 the difference is now less than in most European countries. The sector with the highest salaries in Serbia is information and communication, with the amount “carried” by programme activities and broadcasting with 85,000, telecommunication with 83,800 and computer programming and consulting with 169,343 dinars. On the other side of the scale are services of accommodation and catering with incomes of 27,768 dinars.

Written by: S.V., taken from www.euractiv.rs

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