At its session held on 15 July 2025, the Social and Economic Council of the Republic of Serbia adopted a decision to introduce an extraordinary increase in the minimum wage.
Starting from 1 October 2025, the minimum net wage per working hour will amount to RSD 337 (excluding taxes and contributions). This adjustment represents an increase of RSD 29 per hour, or 9.4% compared to the previous minimum wage of RSD 308 per hour.
This extraordinary increase provides an opportunity to revisit and explain in more detail the concept of the minimum wage and its significance within employment relationships.
Understanding the Minimum Wage and Its Determination
The minimum wage represents the lowest amount that an employee may legally be paid for one hour of work. According to the Labour Law, every employee is entitled to receive at least the minimum wage for standard performance and time spent at work.
The amount of the minimum wage is determined based on the following elements:
- Minimum labour cost (i.e., the amount of minimum wage per working hour) as defined in accordance with the Labour Law;
- Time spent at work; and
- Applicable taxes and contributions.
Employees receiving the minimum wage are also entitled to:
- Salary increases in accordance with the Labour Law; and
- Reimbursement of expenses and other entitlements that are considered part of salary under the law.
The minimum wage thus serves as the basis for calculating salary increases and other related employee entitlements.
Contact
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