Minimum Wage in Serbia Higher by 14.3% from January 1 – Public Sector Pensions and Salaries Also Increased

From January 1, 2023, the minimum wage in Serbia amounts to RSD 40,020, which is an increase of 14.3% compared to 2022.

From the beginning of 2023, the minimum wage is calculated at RSD 230 per hour, that is, RSD 40,020 per month, which is an increase compared to the previous minimum wage of RSD 35,000.

The increase of 14.3%, as the Ministry of Finance points out, is the biggest per cent increase of the minimum wage ever.

The state has also continued reducing the charges on salaries, which began in 2017.

The non-taxable salary components are increased from RSD 19,300 to RSD 21,712 from January 1.

The total unburdening of salaries in the past five years, with the new one, has gone from 64% to 60%.

Also, from January 1, the salaries in the public sector in Serbia will be increased 12.5%, and pensions 12%. Military personnel will have their salaries raised 25%.

From 2023, the harmonization of the pensions will be calculated based on three formulas: by salaries, by prices and by a combination of the harmonization by salaries and the harmonization by prices.

That means that, if the share of pensions in the gross domestic product is lower than 10%, pensions will be harmonized with the changes of the average salaries – in a percentage of the change of the average salaries, which will happen this time, in January 2023.

If that share is 10-10.5%, the harmonization will be done in a combination of salary and inflation percentages, that is, by the current “Swiss formula”, and if it is 10.5% or more, the growth of pensions will follow only the growth of the inflation.

Ministarstvo finansija Republike Srbije

Ministry of Finance

minimum wage increase

minimum wage

salary charge reduction

increase of non taxable salary components

unburdening of salaries

pension increase

military personnel salary increase

public sector salary increase

Swiss formula for pension calculation