Increase in Minimum Earnings

In accordance with the Labor Law, as well as in accordance with the valid regulations of the Republic of Serbia, every year until September 15, the Government makes a decision on the price of an hour for the minimum wage. Thus, last year marked an increase of 6.6%, so the minimum hourly wage for the period January-December 2021 is 183.93 dinars, and the minimum wage has increased by approximately 2000 dinars compared to 2020.

This year, the increase is by 9.4%, and the minimum salary for 2022 will amount to 201.22 dinars per hour.

Also, a new non-taxable amount of salary is prescribed, which will amount to 19,300 dinars, which is 1,000 dinars more. Having in mind the above, it is an indisputable fact that the minimum wage increases every year (Table 1), but the question arises whether the projected minimum wage is sufficient to cover the so-called. consumer basket. Namely, based on the review published by the Ministry of Trade, Tourism and Communications and based on the data of the Republic Bureau of Statistics, the amount of the consumer basket for July 2021 was 39,420.48 dinars.

Period Minimum labor cost per hour (net) Minimum net salary – range Non-taxable amount of salary for payments Increase compared to the previous year
Jan- Dec, 2019 155,3 RSD 24.848,00- 28.575,20 RSD 15.300,00 RSD 8,6%
Jan- Dec, 2020 172,54 RSD 27.606,40- 31.747,36 RSD 16.300,00 RSD 11,1%
Jan-Dec, 2021 183,93 RSD 30.900,24- 33.843,12 RSD 18.300,00 6,6%.
Jan-Dec, 2022 201,22 RSD 32.195,20- 37.024,48 RSD 19.300,00 9,4 %.

The discrepancy observed in the above data indicates that although the minimum wage in the last 3 years has indisputably increased, the question arises whether in 2023 we can finally achieve that the minimum wage reaches the amount of the minimum consumer basket. It remains to be seen.